Cash conversion cycle
Measure how many days cash spends locked in inventory and customer dues, net of supplier credit, and how much would be released if the cycle shortened.
Runs entirely in your browserRuns entirely on your device — nothing you type is sent anywhere. Educational only, and not investment advice.
How to use this calculator
Each step names a control you will find on screen above.
- Revenue (year)
The year’s revenue from operations in ₹ crore. Receivable days are measured against it.
- Cost of goods sold
Materials consumed plus purchases and the change in stock. Inventory and payable days are measured against it, because stock and suppliers are carried at cost, not at selling price.
- Receivables
Trade receivables on the balance sheet — money customers owe.
- Inventory
Raw materials, work in progress and finished goods held.
- Payables
Trade payables — money owed to suppliers. These offset the other two, because supplier credit funds part of the business.
Worked example: A ₹10,000 crore manufacturer
A manufacturer with ₹10,000 crore of revenue and ₹6,500 crore of cost of goods sold ends the year with ₹1,400 crore of receivables, ₹1,100 crore of inventory and ₹900 crore of payables.
What to enter
- Revenue (year)
- ₹10,000 Cr
- Cost of goods sold
- ₹6,500 Cr
- Receivables
- ₹1,400 Cr
- Inventory
- ₹1,100 Cr
- Payables
- ₹900 Cr
What it shows you
- Receivable days
- 51 days
- Inventory days
- 62 days
- Payable days
- 51 days
- Cash cycle
- 62 days
Where this is taught
A calculator gives you a number. These explain what the number means and when it misleads you.
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