Free Tool · Pricing, Profitability & Portfolio

Working Capital & Cash Conversion Calculator

Profit is opinion; cash is fact. Find the days locking up your cash.

Profit is opinion; cash is fact. Enter sales, COGS and average balances; get DSO, DIO, DPO and the cash conversion cycle — plus the rupees released by each day of improvement.

For: CFO·Free — no sign-up for results·Related service: Commercial Excellence
DSO is measured on sales; DIO and DPO on COGS — mixing the bases is the classic CCC error. Use average balances, not year-end snapshots.
Cash conversion
DSO (receivable days)50 days
DIO (inventory days)50 days
DPO (payable days)33.33 days
Cash conversion cycle66.67 days
Cash released per DSO day improved₹1 L
5-day DSO improvement releases₹5 L
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How it works

DSO = receivables ÷ sales × 365. DIO and DPO use COGS, not sales — mixing bases is the classic error that flatters the cycle.

CCC = DSO + DIO − DPO. Each day of DSO improvement releases (sales ÷ 365) in cash — the number that funds growth without borrowing.

Use average balances, not year-end snapshots, and seasonality matters: compare like periods.

Worked example

₹3.65 Cr sales, ₹50 L receivables, ₹30 L inventory, ₹20 L payables: DSO 50, DIO 50, DPO 33 — a 67-day cycle. Five DSO days recovered releases ₹5 L; a collections sprint pays for itself immediately.

Illustrative figures, not a client outcome.

Questions, answered

What's a good cash conversion cycle?

Shorter than your funding can comfortably carry — and shorter than last year. Negative cycles (customers fund you) exist in marketplaces and subscriptions; most B2B runs 30–90 days.

Our DPO is already high. Stretch it more?

Carefully — supplier credit has a price in reliability and pricing. Improve receivables and inventory first; payables last.

Version 1.0 · Reviewed 2026-10 · Methodology is fixed and version-controlled; results depend on your inputs.

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Cash unlocked beats cash raised. Build the working-capital rhythm.

BLEZZINGS runs this analysis inside a focused engagement — with your data, your market and a plan to act on it.