India · Tools
Working-Capital Cycle Calculator.
How many days is your cash locked between paying for stock and collecting from customers? Enter your annual figures and see the cycle, and the funding gap it creates.
Annual figures
Your yearly turnover.
What the goods you sold cost you, before overheads.
Stock on hand across the year.
Money customers owe you.
Money you owe suppliers.
Your cash cycle
Cash conversion cycle
That is how long your cash is locked between paying for stock and collecting from customers.
Inventory days
83.4days
Receivable days
65.7days
Payable days
62.6days
83.4 + 65.7 − 62.6 = 86.6 days
Working-capital tied up
₹1,10,00,000
Inventory plus receivables, less what suppliers fund. At roughly ₹95,890 a day of operating cost, every day you shave off the cycle frees real cash.
This is the steady-state picture
Your real funding need swings with seasonality, a sales push, or a slow-paying buyer, and it rarely matches the textbook average. A 86.6-day cycle on this scale is a sizeable line to carry.
Capera sizes a working-capital line or invoice factoring to your actual cycle, and helps you compress it. See how much you can draw today.
Indicative. Uses a 365-day year and the averages you enter; seasonal businesses and fast-growing ones can have a materially different peak funding need. Confirm with your accountant or bank.
How the cycle works
Cash goes out before it comes back.
You pay suppliers for stock, hold it, sell it, then wait for the customer to pay. The gap between cash leaving and cash returning is your working-capital cycle, and it is what a cash-credit limit or factoring line is there to bridge.
Three numbers set it: how long stock sits, how long customers take to pay, and how long you take to pay suppliers. Stretching supplier terms or collecting faster shortens the cycle and frees cash; growing fast or holding more stock lengthens it.
The figure here is a steady-state average. Seasonal peaks and growth spurts can push the real funding need well above it, which is the number that actually decides your limit.
Common questions
What is the cash conversion cycle?
It is the number of days between paying for stock and collecting the cash from selling it. A shorter cycle means less money tied up in the business and a smaller working-capital line to carry.
How is it calculated?
Days inventory outstanding plus days sales outstanding minus days payable outstanding. Inventory and payable days are measured against cost of goods sold; receivable days against revenue. The calculator does this from the annual figures you enter.
What is a good cash conversion cycle?
Lower is better, but it varies widely by industry. A negative cycle means suppliers effectively fund your operations, a comfortable position. The useful comparison is against your own trend and your sector, not a single number.