Cash & Capital

Cash Conversion Cycle

Calculate your full cash conversion cycle, combining receivables, payables, truck stock, and retainage into one real number.

Days sales outstandingdaysDays payable outstandingdaysInventory (truck stock) daysdaysRetainage release daysdaysRetainage revenue share%

Cash conversion cycle47 days

Retainage contribution12 days

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Next Decision

Based on your results, these related decisions are available.

Operating Reserve SizingA longer cash cycle means a bigger reserve target; revisit your reserve once you know your real cycle length.

Want to Learn More?

VisualBuilding a Cash Buffer That Covers PayrollA slow month should never mean scrambling to make payroll. A 4-person crew needs $20,800 set aside to cover 4 weeks with zero incoming revenue, a number that scales exactly with crew size and however many weeks of cover feel safe.

Methodology

Formula: Cash conversion cycle = inventory days + DSO - DPO + (retainage days × retainage revenue share %). The retainage term is this project’s own extension to the classic DIO + DSO - DPO formula.

Assumption: A negative cash conversion cycle is a genuinely good result (you collect and stock materials faster than you pay suppliers), not an error.

Limitation: A synthesis engine: the component figures may already reflect assumptions you entered on Receivables, Retainage, or Truck Stock Carrying Cost.