CCC
Cash conversion cycle calculator.
DIO plus DSO minus DPO. The number of days the business funds the operating cycle out of working capital. Lower is better; negative is rare and reads as customer-financed.
Formula
CCC equals days inventory outstanding plus days sales outstanding minus days payable outstanding. A grocer at DIO 26, DSO 1, DPO 35 lands at a negative eight days, meaning suppliers finance the operating cycle. A distributor at DIO 52, DSO 45, DPO 35 sits at 62 days, funded out of the revolver.
INPUTS (days)
CASH CONVERSION CYCLE
75days
CCC = DIO + DSO − DPO
Industry context
At the inventory leg, grocery clears in 26 days, restaurants in 17, apparel in 91, jewelry in 240. Use the industry atlas to plug a defensible DIO assumption before reading the CCC result.
NYU-STERN 2026 CENSUS-ARTS 2026
Which lever moves cheapest
- DPO. Renegotiating supplier terms from net 30 to net 45 is free if the relationship allows.
- DIO. Reorder discipline plus SKU rationalisation lifts turnover within a quarter.
- DSO. Tightening collections takes longer and can cost revenue.