Cash flow · Working capital
Follow the cash.
Measure the cycle.
Translate average inventory, receivables, and payables into operating and cash-conversion days.
Analysis period→Inventory + receivable − payable days→Cash conversion cycle
Cash conversion cycle
60.8 daysInventory Days91.3 days
Receivable Days30.4 days
Payable Days60.8 days
Operating Cycle121.7 days
Working Capital$80,000.00
Cash Tied Up Estimate$60,000.00
Planning estimate only. Verify actual tax rules, prices, cash-flow timing, exchange quotes, fees, and accounting treatment for your business.Calculation method
Inventory days plus receivable days, minus payable days.
Inventory and payable days use period COGS; receivable days use period revenue. The cash-tied-up estimate multiplies positive cycle days by average daily COGS. Use consistently averaged balance-sheet accounts and matching income-statement periods. This simplified diagnostic excludes seasonality, cash purchases, deposits, taxes, financing costs, account aging, and supplier or customer concentration.