Cash Conversion Cycle Calculator
CCC = DIO + DSO − DPO
Enter your numbers for the days your cash is tied up.
TL;DR Cash conversion cycle = DIO + DSO − DPO: the days between paying suppliers and collecting from customers. A brand at 75 days of inventory, 45 days of receivables, and 30 days of payables runs a 90-day cycle. Retail CPG brands commonly run 60 to 120 days.
Cash conversion cycle
90 days
The formula
Cash conversion cycle (days) = DIO + DSO − DPO
Worked example
A CPG brand holds inventory for 75 days before it sells (DIO), collects from retailers in 45 days (DSO), and pays its suppliers in 30 days (DPO). Its cash conversion cycle is 75 + 45 − 30 = 90 days. For those 90 days the brand has paid for goods it has not yet collected on, so every incremental order ties up cash for three months.
Typical CCC by channel (indicative, as of Q3 2026)
| Channel | Typical cash conversion cycle |
|---|---|
| DTC ecommerce | 20 – 50 days |
| Grocery / natural | 60 – 100 days |
| Mass retail (Walmart / Target) | 75 – 120 days |
| Club (Costco / Sam's) | 60 – 90 days |
| Foodservice | 45 – 75 days |
Ranges are indicative and vary by category, terms, and turns. For preliminary planning only; not an offer of credit.
Frequently asked questions
What is the cash conversion cycle?
The cash conversion cycle (CCC) is the number of days between paying your suppliers and collecting cash from your customers: days inventory outstanding plus days sales outstanding minus days payable outstanding. A brand holding inventory 75 days, collecting in 45, and paying suppliers in 30 runs a 90-day cycle.
What is a good CCC for a CPG brand?
As of Q3 2026, retail CPG brands commonly run 60 to 120 days. DTC ecommerce brands can run 20 to 50 days because customers pay at checkout. Anything under your peer channel range is strong; the longer the cycle, the more working capital each dollar of growth requires.
How does mass retail stretch the cycle?
Mass retailers place bigger purchase orders, which means more inventory produced and held before shipment, then pay on 45 to 90 day terms. Deductions and chargebacks add further delay before cash is fully collected, so brands selling into mass retail often see 75 to 120 day cycles.
How can a brand shorten its cash conversion cycle?
Negotiate longer payment terms with suppliers (raising DPO), speed up collections with factoring or purchase order financing (cutting effective DSO), and improve inventory turns with tighter demand planning (cutting DIO). Even a 15-day improvement materially reduces the cash a growing brand needs.