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Cash Conversion Cycle CalculatorDSO, DIO and DPO

What do these figures come to once the work is shown?

Days sales outstanding, days inventory outstanding, days payables outstanding and the cash conversion cycle from period totals and average balances.

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  • Nothing stored or sent
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Your figures
Example figuresIllustrative only. Type over them with your own.
Cash conversion cycle
72.1 days
Days cash is tied up between paying suppliers and collecting from customers
Days sales outstanding
50.0 days
Days inventory outstanding
63.9 days
Drawn to one scale
Cash conversion cycle72.1 days
Days sales outstanding50.0 days
Days inventory outstanding63.9 days
Days payables outstanding41.7 days
Operating cycle (DSO + DIO)113.8 days
All results
MeasureResult
Cash conversion cycle72.1 days
Days sales outstanding50.0 days
Days inventory outstanding63.9 days
Days payables outstanding41.7 days
Operating cycle (DSO + DIO)113.8 days
How this was worked out
Work shownrecomputed as you type
DSO = average AR / revenue x days
DIO = average inventory / COGS x days
DPO = average AP / COGS x days
Cash conversion cycle = DSO + DIO - DPO

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • DSO = average AR / revenue x days
  • DIO = average inventory / COGS x days
  • DPO = average AP / COGS x days
  • Cash conversion cycle = DSO + DIO - DPO

How it works

The cash conversion cycle measures how many days the business funds its operations. It adds the days to sell inventory and collect receivables, then subtracts the days it takes to pay suppliers.

Auditors use it as an analytical tool: a lengthening DSO can point to slow collection or premature revenue, a lengthening DIO to obsolete stock, and a lengthening DPO to cash stress. Use average balances when you have them, and compare to prior periods and peers.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Can the cycle be negative?

Yes. Businesses that collect before they pay suppliers can have a negative cycle.

Should DSO use credit sales?

Credit sales are better when cash sales are material. Enter that figure as revenue.

Why average balances?

Year-end balances can be distorted by seasonality.

Formulas on this page are the standard definitions.

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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