Cash Conversion Cycle
How many days cash is tied up between paying for inventory and collecting on the sale.
Example
You enter
- DSO (days) 45
- DIO (days) 60
- DPO (days) 30
You get
- Cash conversion cycle 75 days
- Dio contribution 60
- Dso contribution 45
- Dpo contribution -30
Checked against published worked examples from: OpenStax (Rice University).
Details, formula, and sources
ScopeCCC = DIO + DSO - DPO with per-component contribution.
Formula or tableCCC = DIO + DSO - DPO. DIO = avg_inventory / (COGS / period_days). DSO = AR / (revenue / period_days). DPO = AP / (COGS / period_days).
Source and editionStandard working-capital identity. First principles; user supplies the three day-counts.
Free accessNo code citation required.
What governsEstimate. Verify before sending to your bookkeeper, banker, or CPA.
API field namesdso, dio, dpo, ccc_days, dio_contribution, dso_contribution, dpo_contribution
- Inputs user supplies DSO / DIO / DPO already computedtile is the cycle calculation, not the underlying ratios