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0 views2 pages

jhdsfvbhjdsbfj6t4r43

hdvfgjfvj7474

Uploaded by

BALACHANDAR S
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Cash Conversion Cycle

S.No Activity Ratio Formula

Average Inventory / Cost of ​Goods Sold × 365 Days

1
Day of Inventory
Outstanding (DIO) =
DIO (Lower the better)

Average Accounts Receivable / Total Revenue × 365 Days

2
Day of Sales Outstanding
(DSO) =
DSO (Lower the better)

Average Accounts Payable / Cost of ​Goods Sold × 365 Days

3
Day of Payable
Outstanding (DPO) =
DPO (Higher the better)

DIO + DSO - DPO


4 Cash Coversion Cycle =

CCC (Lower the Better)


Income Statement
Balance Sheet Entry
Entry
Financial Year Financial Year
Cost of Goods Sold
Starting Ending
(Cost of Service)
Inventory Inventory
JAY:
Enter values only in
4.35 4.12 19.35 blue colored cells

79.89

5.86 4.72 26.72

72.26

6.45 5.05 19.35

108.46

DIO DSO DPO

79.89 72.26 108.46

43.68

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