How Long Is Your Money Trapped?
See how many days your cash is tied up in business operations. The number that reveals working capital reality.
Every business has a hidden number that determines how much working capital it needs: the cash conversion cycle. It measures how long money is trapped between paying for inventory and collecting from customers. A 60-day CCC means you need 60 days worth of operating costs on hand just to keep the business running. That's real money tied up doing nothing. This calculator shows you that number. If it's high, you're financing your customers' convenience with your own cash. If it's negative (rare but possible), your customers pay you before you pay your suppliers. That's the Amazon model. Where do you fall?
Calculator
Common use cases
- Understanding working capital requirements
- Seeing why cash flow is tight despite profits
- Identifying where money gets trapped
- Comparing your efficiency to industry leaders
How to use
- Enter Days Inventory Outstanding (how long inventory sits)
- Enter Days Sales Outstanding (how long to collect receivables)
- Enter Days Payables Outstanding (how long to pay suppliers)
- View your cash conversion cycle
FAQ
What's a good CCC?
Lower is better. Negative CCC (like Amazon) means you get paid before paying suppliers. Most businesses aim for 30-60 days.
How can I improve CCC?
Reduce inventory levels, collect receivables faster, and negotiate longer payment terms with suppliers.
Why does CCC matter?
A longer CCC ties up more cash in operations, requiring more working capital to run the business.
Is a long CCC bad?
It means more cash is tied up. That's expensive and risky. Shorter = more efficient.
This calculator provides illustrative estimates for planning purposes only and does not constitute financial, tax, or legal advice.