Use this calculation when every balance, flow, and elapsed period follows the same accounting basis, currency, entity boundary, and reporting period. It is useful for a reproducible schedule or analytical cross-check, but the result should still reconcile to the ledger.

Days sales outstanding

Days sales outstanding: average receivable collection period in days.

Days inventory outstanding

Days inventory outstanding: average time inventory is held before sale, in days.

Days payable outstanding

Days payable outstanding: average time taken to pay suppliers, in days.

The implemented rule is: Calculate the cash conversion cycle in days as days inventory outstanding plus days sales outstanding minus days payable outstanding.^[1]

Cash conversion cycle

Days between paying suppliers and collecting cash from customers; negative values mean suppliers finance the operating cycle.

The calculator applies the stated arithmetic and does not decide whether a recognition method or classification is permitted under a particular accounting framework. Estimates, cutoff errors, seasonality, acquisition effects, inconsistent averages, and differing policies can make a mathematically correct result misleading.

Reconcile the inputs to the general ledger and supporting schedules. For reporting decisions, compare the result with the entity's accounting policy, applicable GAAP or IFRS guidance, prior-period disclosures, and an accountant's review.

• Operating Cycle Calculator

  Calculate the operating cycle in days as days sales in inventory plus days sales outstanding, the time from acquiring inventory to collecting cash from sales.

• DSO Days Sales Outstanding Calculator

  Calculate days sales outstanding as average accounts receivable divided by credit sales, times the number of days in the period.

• Payable Turnover and Days Calculator

  Calculate payable turnover and payment days from credit purchases and average accounts payable for the same period and currency.