calculate_cash_conversion_cycle
Calculate the cash conversion cycle (CCC): DSO + DIO - DPO — the net number of days cash is tied up between paying suppliers and collecting from customers. Formula: CCC = Days Sales Outstanding + Days Inventory Outstanding - Days Payables Outstanding. WHEN TO USE: Use as the definitive working-capital efficiency measure: a shorter (or negative) CCC means less capital trapped in operations. WHEN NOT TO USE: Do NOT use unless all three components are computed on a consistent 365-day basis and comparable periods. BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { cash_conversion_cycle_days: number (e.g. 57.7 days; negative = operating on supplier cash), inputs }. PARAMETERS: dso (required): Days sales outstanding, e.g. 45.6. dio (required): Days inventory outstanding, e.g. 60.8. dpo (required): Days payables outstanding, e.g. 48.7.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| dio | Yes | Days inventory outstanding, e.g. 60.8. | |
| dpo | Yes | Days payables outstanding, e.g. 48.7. | |
| dso | Yes | Days sales outstanding, e.g. 45.6. |