How much cash is tied up
in day-to-day operations?
Enter figures for one consistent period. Get results without an email address. Amounts remain in this browser tab.
Your working-capital snapshot
Enter your figures or try an illustrative example.
ILLUSTRATIVE EXAMPLE
What to investigate
This is operating NWC (receivables + inventory − payables), not total current assets less all current liabilities. It excludes cash, debt, taxes and other balances.
Want a deeper CFO analysis?
Discuss the drivers behind your result. Your tool inputs are not included in the enquiry.
How the calculations work & their limits
Operating NWC = receivables + inventory − payables. DSO = receivables ÷ revenue × period days. DIO = inventory ÷ COGS × period days. DPO = payables ÷ COGS × period days. Cash conversion cycle = DSO + DIO − DPO.
Ratios use average balances where supplied; a closing balance gives only an approximation. Align periods, tax treatment and business scope. Credit sales and credit purchases are preferable denominators; this simplified tool uses revenue and COGS. Zero denominators show “Not available”; they are never interpreted as zero days. A negative cycle can reflect timing or customer advances and is not automatically a strength.
Compare with your own payment terms and prior periods, not a universal target. Educational estimates only; not a forecast, credit assessment or professional opinion. Read the disclaimer. Reference: CFA Institute on the cash conversion cycle.