Landed cost
Bring product, freight, duty, and fees into one number.
Costs & conversionCOSTS & CONVERSION
Cash-to-Cash Conversion Cycle Calculator
Calculate the cash conversion cycle from entered inventory days, customer collection days, and supplier payment days.
Cash-to-cash cycle calculator
Calculate the cash conversion cycle from entered inventory days, customer collection days, and supplier payment days.
YOUR RESULT LIVE CALCULATION
Cash conversion cycle
35days
POSITIVE MODELED CASH CYCLE- Inventory days: add
- 45 days
- Receivable days: add
- 30 days
- Payable days: subtract
- 40 days
- Inventory plus collection period
- 75 days
Bars show component magnitudes, not a cumulative timeline. Comparable ratio periods and day-count bases are required.
BEHIND THE NUMBER
How the calculation works
Inventory and receivable days lengthen the operating cash cycle; payable days offset it. Enter compatible period averages using one day-count basis. DIO typically uses inventory and cost of goods sold, DSO uses receivables and sales, and DPO uses payables and the appropriate purchases or cost basis. This tool combines those prepared metrics rather than deriving them from balances.
Cash conversion cycle = DIO + DSO - DPO
When this calculation helps
The cash-to-cash cycle combines inventory days, collection days, and payment days to summarize a modeled funding interval. Use comparable period averages and consistent financial definitions.
Check the interpretation
A shorter or negative cycle does not alone establish strong liquidity or a feasible payment policy. Seasonality and cash timing can differ from averages. This planning metric is not a financing recommendation or a forecast of an actual bank balance.
A negative result is possible when supplier payment days exceed inventory plus collection days. It is not automatically good or sustainable. This is a duration metric, not a cash-flow forecast or a borrowing recommendation.
Good to know
Can the cash cycle be negative?
Yes. Under the entered averages, customer collections occur before the modeled supplier payment point. This does not prove that every transaction is self-financing.
Can I mix monthly and annual ratios?
Use comparable periods and a consistent day-count convention. Seasonality, growth, different balance dates, or different ratio bases can distort the combined cycle.