Cash flow / Free financial tools

Working Capital & Cash Conversion Calculator

Compare inventory, collection and payment days to see how operations tie up cash.

USD • Planning model · Instant results · No sign-up

Enable JavaScript to use this interactive calculator. The calculation method and assumptions are explained below.

How this calculator works

Inventory days use inventory divided by cost of sales. Receivable days use credit sales. Payable days use credit purchases. Cash conversion cycle = inventory days + receivable days − payable days.

Planning estimate only. Review the assumptions alongside the result before using it for a tax, financing or business decision.

Common questions

Can I use year-end balances?

Average balances are preferable, particularly for seasonal businesses. Use balances and trading figures from the same period.

What does a negative cycle mean?

It can mean customers pay before suppliers need to be paid. Interpret the result alongside stock availability, payment terms and overdue balances.

Put your numbers into context.

A calculator can help you ask better questions. Tell ZTax what you are planning and we will discuss the records, scope and support you need.

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