Tool
Working-Capital Cycle Calculator
See how long cash is tied up between paying suppliers and collecting from customers, how much is tied up, and what faster collection would release.
🔒 Your figures stay on your device. Nothing is submitted, stored or sent to us.
How this calculator works
Debtor days show how long customers take to pay: receivables ÷ sales × 365. Inventory days show how long stock sits before it is sold: inventory ÷ cost of goods sold × 365. Creditor days show how long you take to pay suppliers: payables ÷ cost of goods sold × 365.
The cash cycle is debtor days plus inventory days minus creditor days. It is the number of days your own cash, or borrowed money, funds the business between paying for goods and being paid for them.
A profitable business can still run short of cash if the cycle lengthens. Shortening it by collecting sooner or holding less stock releases cash without new borrowing.
Stretching supplier payments has limits: payments to micro and small enterprises must be made within 45 days at most.