Keystone · Working Capital & Trade
Cash Conversion Cycle Calculator
Measure how many days cash is locked in operations and estimate the cash released by improving collections, inventory or payment terms.
In short: The cash conversion cycle is DSO + DIO − DPO: the days between paying suppliers and collecting from customers. A shorter cycle means less cash tied up in operations.
Annual figures
Scenario: change in days
DSO
60d
Days sales outstanding
DIO
45d
Days inventory
DPO
30d
Days payables
CCC
75d
DSO + DIO − DPO
Scenario result
Scenario CCC: 60 days · approximate cash impact: ₹14,00,000
Cash impact assumes daily sales and COGS are spread evenly across the period; the estimate is indicative and ignores seasonality.
Worked example
With annual credit sales of ₹3.65 Cr, receivables of ₹60 lakh, COGS of ₹2.92 Cr, inventory of ₹36 lakh and payables of ₹24 lakh: DSO ≈ 60, DIO ≈ 45, DPO ≈ 30, CCC ≈ 75 days.
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Estimates are indicative. A Keystone advisor can review your specific position.
Should I use revenue or credit sales?
Credit sales are correct; if only total revenue is available, the result is an approximation.
Is a negative CCC possible?
Yes — businesses collecting before paying suppliers (e.g. some retail models) can have a negative cycle.
This tool provides indicative estimates for education and planning only. It is not investment advice, a fairness opinion, a tax computation, a financing offer or a regulatory determination. Consult a qualified advisor before acting on any result.
Service: Trade Finance