Finance

Cash Conversion Cycle (CCC) Calculator

Measure how long it takes for a company to convert inventory purchases into cash from sales.

Days Inventory Outstanding (DIO)

Avg days to sell inventory

Days Sales Outstanding (DSO)

Avg days to collect receivables

Days Payable Outstanding (DPO)

Avg days to pay suppliers

Or calculate from financials:

Revenue ($)

COGS ($)

Avg Inventory ($)

Avg Receivables ($)

Avg Payables ($)

Formula:
CCC = DIO + DSO − DPO
DIO = (Avg Inventory / COGS) × 365
DSO = (Avg Receivables / Revenue) × 365
DPO = (Avg Payables / COGS) × 365

What is the Cash Conversion Cycle?

The CCC measures the time (in days) it takes a company to convert its investments in inventory and other resources into cash flows from sales. A shorter CCC means the company is more efficient at managing its working capital.

Interpreting CCC

Low/Negative CCC: Excellent — company gets paid before paying suppliers (e.g., Amazon)
30-60 days: Good working capital management for most industries
60+ days: May indicate cash flow challenges

Industry Benchmarks

Industry	Typical CCC
Retail (Grocery)	−5 to 10 days
Technology	30-60 days
Manufacturing	60-120 days
Construction	80-150 days