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Growth Tool — Cash Conversion Cycle Calculator

Working Capital Efficiency Calculator — Measure Your Cash Conversion Cycle

Calculate your Cash Conversion Cycle (CCC) from inventory days, receivables days, and payables days. Identify where to improve working capital efficiency.

Use the Calculator

Formula & How It Works

DIO = Inventory ÷ COGS × 365
DSO = Receivables ÷ Revenue × 365
DPO = Payables ÷ COGS × 365
CCC = DIO + DSO − DPO

Worked Example

Scenario: Revenue ₹2.4Cr, COGS ₹1.7Cr, Inventory ₹30L, Receivables ₹40L, Payables ₹20L.

DIO=64 | DSO=61 | DPO=43 | CCC=82 days — improve collections and reduce inventory

When to Use This Calculator

  • Calculate cash conversion cycle for annual review
  • Identify whether inventory or receivables is the bigger drag
  • Set targets for procurement and collections teams
  • Benchmark CCC against industry peers
  • Present working capital efficiency to bank or investors

Frequently Asked Questions

Working capital efficiency measures how effectively a business uses its current assets and liabilities to fund operations and generate revenue.
CCC = Inventory Days + Receivables Days − Payables Days. A shorter CCC means faster cash conversion. Negative CCC (like large retailers) means you collect before paying suppliers.
Reduce inventory days (faster turnover), reduce DSO (faster collections), and increase DPO (negotiate longer supplier credit).
FMCG distributors: 10–20 days. Retail: 20–40 days. Manufacturing: 45–90 days. Lower is always better.
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