Business Calculators

The cash conversion cycle, also known as the working capital cycle, measures how long it takes your business to sell inventory, collect invoices, and pay suppliers. It’s an important metric because it shows how efficiently your business turns operating activity into cash. An increasing cash conversion cycle may indicate that cash is tied up for […]

Inventory days, also known as Days Inventory Outstanding (DIO), measures how long your business holds stock before it is sold or used, on average. It’s an important metric because it provides a general gauge of your stock management efficiency. An increasing inventory days figure may indicate slow-moving stock, excess inventory, or potential cash flow problems. […]

Debtor days, also known as days sales outstanding (DSO), measures how long your customers take to pay their invoices, on average. It is an important metric because it provides a general gauge of your collections performance. An increase in debtor days may indicate collection delays and potential cash flow issues. Formula: Debtor Days = (Average […]

Creditor days, also known as days payable outstanding (DPO), measures how long your business takes to pay its suppliers, on average. It’s an important metric because it provides a general gauge of how your business manages supplier payments and cash flow. An increasing creditor days figure may indicate that your business is taking longer to […]