Cash Conversion Cycle
How many days from when you pay suppliers to when customers pay you. Lower is better: it means cash comes back faster. Combine Receivable Days + Inventory Days − Payable Days.
- How it's worked out
- Days Receivable + Days Inventory − Days Payable
- Which way is better
- Lower is betterLower is better for cash.
Written by Mandy Walker, founder of Focus on Cash. Updated October 2026. This explanation comes from the glossary inside Focus on Cash, so it matches the words you see in the app.
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