DSO, DIO, DPO and cash conversion cycle calculator
How long cash is tied up between paying suppliers and collecting from customers. It opens on a worked example — change any number. Nothing you enter is saved.
Cash conversion cycle
40 days
- DSO (days sales outstanding)
- 30 days
- DIO (days inventory outstanding)
- 40 days
- DPO (days payable outstanding)
- 30 days
The formula
- DSO = average accounts receivable ÷ credit sales × days in period
- DIO = average inventory ÷ COGS × days in period
- DPO = average accounts payable ÷ COGS × days in period
- Cash conversion cycle = DIO + DSO − DPO
How to read it
A shorter cycle means cash comes back sooner. Collecting faster, holding less inventory or negotiating longer supplier terms all shorten it.
Definitions, a full worked example and common pitfalls are in our guide: DSO, DIO, DPO and the Cash Conversion Cycle.
General information, not accounting, tax or financial advice. Definitions vary between companies — match the formula to how your own systems count.