Estimate the days from acquiring inventory through collecting cash from customers. Enter your own values below. The calculator shows the formula it uses, a graph and a step-by-step explanation of the result.
Also searched as: operating cycle, inventory days, receivable days
How the calculation works
Formula
Operating Cycle = Inventory Holding Period + Receivables Collection Period
The cycle adds inventory holding days and customer collection days. Faster inventory turnover and collection can shorten it. The estimate uses the entered day values and excludes seasonal and transaction-level effects.
What you enter
- Inventory holding period (days)
- Receivables collection period (days)
- Display currency (formatting only — no exchange-rate conversion)
What the results show
- Operating cycle (days)
- Inventory holding period (days)
- Receivables collection period (days)
- Inventory contribution
- Receivables contribution
Results are estimates based only on the values and assumptions you enter. Open the detailed analysis to see the graph, the step-by-step story and the stated assumptions, and use the report menu to print, save as PDF, export a schedule to CSV or share the inputs.
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When to use this calculator
How long is cash tied up in operations? Operations and finance managers can use it to get a quick estimate from their own figures.
Worked example
Holding inventory for 45 days and collecting receivables in 30 days gives an operating cycle of 75 days.
Illustrative figures in any currency. Enter your own values in the calculator above.