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Working Capital Cycle Calculator

Work out working capital cycle instantly with clear inputs, formula shown and shareable results.

About Working Capital Cycle Calculator

The cash conversion cycle is days inventory plus days receivable minus days payable: how long cash is locked up between paying a supplier and being paid by a customer. Multiplying by daily sales converts the days into the actual working capital the cycle consumes.

Formulas

Cash conversion cycle

CCC = DIO + DSO - DPO

Working capital tied up

Cash tied up = CCC x Average daily sales

Worked example

With the default values below, Working Capital Cycle Calculator returns Cash conversion cycle of 69.0. Change any input above and every figure here is recalculated in your browser.

Inputs used

Days inventory outstanding
62
Days sales outstanding
45
Days payable outstanding
38
Average daily sales
25,000

Results

Cash conversion cycle
69.0
Operating cycle (DIO + DSO)
107.0
Cash tied up in the cycle
$1,725,000.00
Days funded by suppliers
38.0

Step by step

  1. 1Values used
  2. 2Cash conversion cycle
  3. 3Working capital tied up
  4. 4Cash conversion cycle= 69.0
  5. 5Operating cycle (DIO + DSO)= 107.0
  6. 6Cash tied up in the cycle= 1,725,000.00
  7. 7Days funded by suppliers= 38.0

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Can the cycle be negative?

Yes. Retailers and marketplaces that sell before paying suppliers run negative cycles, which means growth generates cash instead of consuming it.

Which lever is easiest to pull?

Usually DSO through collections discipline. Extending DPO shifts cost onto suppliers and often comes back as price.

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Working Capital Cycle Calculator | Calcrivo