Free operating cash cycle tool
Cash Conversion Cycle Calculator
Calculate how long cash remains tied up between paying suppliers and collecting customer cash, then see the working-capital impact of improving the cycle.
Simple calculator
Updates live
Enter the operating cycle
Cycle days
Operating scale
Cash conversion cycle
CCC = Days Sales Outstanding + Days Inventory Outstanding − Days Payable Outstanding.
Advanced calculator
Cycle sensitivity
Model the cash and financing impact
Operating scale
Current cycle
Target operating cycle
Current balances
Advanced view
The model compares current cycle economics with a target cycle, estimates cash released or required, annual financing-cost savings and the working-capital impact of growth.
Cash-cycle bridge
Current vs target cycle
Where operating cash is tied up
| Component | Current days | Current cash | Target days | Target cash | Cash released / required |
|---|
One-day sensitivity
Current operating scale
Value of improving the cycle by one day
| Operating lever | Cash released per 1 day | 10-day improvement | Annual financing savings | Signal |
|---|
Growth sensitivity
Current operating days held constant
Cash tied up as revenue grows
| Revenue growth | Projected revenue | Projected receivables | Projected inventory | Projected payables | Cash tied up |
|---|
Cycle benchmark ladder
Illustrative operating targets
Cash impact at different CCC levels
90-day cycle$0
60-day cycle$0
30-day cycle$0
0-day cycle$0
Reading the result
A shorter cash conversion cycle usually means less cash is trapped in everyday operations.
The cash conversion cycle measures the time between paying for inventory or direct operating inputs and collecting cash from customers. Receivables and inventory lengthen the cycle, while supplier payment terms shorten it.
A positive cycle normally means the business must finance part of its operating activity. A zero or negative cycle means supplier financing and customer cash arrive quickly enough that less outside working capital is required.
DSOAverage number of days between making a credit sale and collecting the customer cash.
DIOAverage number of days inventory or direct inputs remain tied up before being sold.
DPOAverage number of days suppliers effectively finance the business before they are paid.