How the Cash Conversion Cycle Calculator works
The cash conversion cycle shows how long your money is locked up. A shorter cycle means the same cash funds more sales per year.
Formula
- CCC = Days inventory outstanding + Days sales outstanding − Days payable outstanding
- Cash tied up ≈ Daily COGS × CCC
Example
104 days, so about $20,800 is always tied up.
Days inventory sits before selling (DIO): 90Days until Amazon pays out (DSO): 14Days of supplier credit (DPO): 0Monthly cost of goods (optional): 6000
Frequently asked questions
Why is DSO 14?
Amazon disburses roughly every 14 days; add a few days for the transfer.