Cash Conversion Cycle Calculator Tool

Cash Conversion Cycle Calculator

Cash Conversion Cycle Calculator

Cash Conversion Cycle Calculator

Component Description
Days Inventory Outstanding (DIO) The average number of days it takes to sell the entire inventory.
Days Sales Outstanding (DSO) The average number of days it takes to collect payment after a sale.
Days Payable Outstanding (DPO) The average number of days it takes to pay invoices from suppliers.
Cash Conversion Cycle (CCC) The total number of days it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
Formula CCC = DIO + DSO – DPO
Purpose Used to measure the efficiency of a company’s management in converting inventory into sales and receivables into cash.

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