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Industrial Finance
Cash Conversion Cycle Calculator
In short: the cash conversion cycle (CCC) measures how many days a company’s cash is tied up in operations, from paying for inventory to collecting from customers. This calculator computes CCC = DIO + DSO − DPO from balance-sheet figures or day-counts, shows the operating cycle and each component, and flags a cash-generating negative cycle.
The cash conversion cycle formula
CCC = DIO + DSO − DPO, where DIO = (inventory ÷ COGS) × days, DSO = (receivables ÷ revenue) × days, DPO = (payables ÷ COGS) × days; operating cycle = DIO + DSO.
The cash conversion cycle answers a question every operator and analyst cares about: how long is the company own cash locked up in the business before it comes back? Cash flows out to pay for inventory, sits in stock, is sold on credit and becomes a receivable, and only returns when the customer pays, offset by however long the company itself delays paying its suppliers.
The cash conversion cycle measures that net delay in days, and it is one of the clearest gauges of working-capital efficiency there is.
This calculator computes it two ways, from your balance-sheet and income figures (inventory, receivables, payables, revenue, and cost of goods sold) or from the three day-counts entered directly, and it reports days inventory outstanding, days sales outstanding, days payable outstanding, the operating cycle, and the cash conversion cycle itself, with a plain-language note on what the result means.
A short cycle frees cash and makes growth cheaper; a long one ties cash up and forces borrowing; and a negative cycle, where suppliers fund the business, is a genuine advantage. Because the metric is known worldwide, this tool uses the native terms of each market, DIO/DSO/DPO in English, PCI/PCC/PCP in Spanish, and PME/PMR/PMP in Portuguese, so it reads naturally wherever it is used.
What the cash conversion cycle measures
Every business that holds inventory and sells on credit has cash tied up in a predictable loop. First it pays for or produces goods, committing cash. Those goods wait as inventory until they are sold. When sold on credit, they become accounts receivable, still not cash. Finally the customer pays, and cash returns.
Against this outflow-to-inflow journey sits one offsetting factor: the company does not pay its own suppliers immediately either, so for a while it is holding suppliers goods without having paid for them, which shortens the period its own cash is committed. The cash conversion cycle nets all of this into a single number of days, the time between cash going out to suppliers and cash coming back from customers.
It is not a measure of profit or of how much cash exists, but of how long cash is immobilised in operations, which is exactly what determines how much working capital a business needs and how easily it can grow.
The formula and its three parts
The cash conversion cycle is the sum of two waiting periods minus one: CCC = DIO + DSO − DPO. Days inventory outstanding, DIO, is how long goods sit in inventory before sale, computed as inventory divided by the cost of goods sold, times the days in the period. Days sales outstanding, DSO, is how long customers take to pay, computed as accounts receivable divided by revenue, times the days.
Days payable outstanding, DPO, is how long the company takes to pay suppliers, computed as accounts payable divided by the cost of goods sold, times the days. The first two, added, are the operating cycle; subtracting the third gives the cash conversion cycle.
Worked through with DIO of 50, DSO of 50, and DPO of 30, the operating cycle is 100 days and the cash conversion cycle is 70 days, meaning the company own cash is tied up for about seventy days on average between paying suppliers and collecting from customers. This calculator computes each component and both cycles from your inputs.
Days inventory outstanding (DIO)
Days inventory outstanding measures how long, on average, goods sit in inventory before they are sold. It is inventory divided by the cost of goods sold, scaled to the number of days in the period, so it expresses the inventory balance as a number of days of cost. A DIO of 50 means the company holds about fifty days of inventory at its current rate of sales.
Lower is generally better, because inventory ties up cash and can incur storage, obsolescence, and financing costs, but too low a level risks stockouts and lost sales, so the right figure balances efficiency against availability. DIO varies hugely by business: a grocer turns stock over in days, while a machinery maker may hold it for months.
It is the component most directly tied to how well a company manages its inventory, and it is often the largest lever in a long cash conversion cycle, especially for manufacturers and retailers. This calculator isolates DIO so you can see how much of the cycle comes from inventory.
Days sales outstanding (DSO)
Days sales outstanding measures how long, on average, customers take to pay after a credit sale. It is accounts receivable divided by revenue, scaled to the days in the period, expressing the receivable balance as a number of days of sales. A DSO of 50 means the company waits about fifty days to collect.
Lower is better, because uncollected sales are cash the company has earned but cannot yet use, and a rising DSO can signal loosening credit terms, weakening collections, or customers in difficulty. DSO reflects both the credit terms a company offers and how effectively it enforces them, so it is a lever management can pull through invoicing discipline, credit control, and incentives for early payment.
A business that sells only for cash has a DSO near zero, while one selling to large customers on extended terms can have a high DSO. This calculator shows DSO separately, so you can see how much of the cycle is waiting on customers to pay.
Days payable outstanding (DPO)
Days payable outstanding measures how long, on average, the company takes to pay its own suppliers. It is accounts payable divided by the cost of goods sold, scaled to the days in the period. Unlike the other two components, a higher DPO shortens the cash conversion cycle, because the longer a company delays paying suppliers, the longer it holds onto its cash and the more of the operating period is financed by the suppliers rather than by the company itself.
So stretching payables is one way to shorten the cycle, but it has limits: paying too slowly can strain supplier relationships, forfeit early-payment discounts, or damage a company standing, so the aim is to use the terms available without abusing them. DPO reflects a company negotiating position and payment policy, and a strong buyer can often secure long terms that push its cash conversion cycle down, even negative.
This calculator subtracts DPO from the operating cycle and shows it separately, so the offsetting effect of supplier financing is explicit.
The operating cycle versus the cash cycle
It is worth being clear about the two cycles this calculator reports, because they answer slightly different questions. The operating cycle, DIO plus DSO, is the gross time from acquiring inventory to collecting cash from its sale, regardless of how the inventory was paid for. It describes the length of the working-capital process itself. The cash conversion cycle then subtracts DPO, crediting the company for the days it delays paying suppliers, to give the net time its own cash is committed.
The difference between the two is precisely the supplier financing captured by DPO. A company might have a long operating cycle, say a hundred days of inventory and collections, yet a much shorter cash conversion cycle if it pays suppliers slowly, because for a large part of that operating period it is using suppliers money rather than its own.
Reading both figures together, as this calculator presents them, separates how long the operation inherently takes from how much of it the company has to fund itself.
Five worked examples of the cash conversion cycle
Example 1: days inventory outstanding
Average inventory is 200,000 and annual COGS 1,460,000. DIO = 200,000 ÷ 1,460,000 × 365 = 50 days. Stock sits on the shelf about 50 days before it is sold.
Example 2: days sales outstanding
Average receivables are 200,000 and annual sales 1,460,000. DSO = 200,000 ÷ 1,460,000 × 365 = 50 days. Customers take about 50 days to pay after a sale.
Example 3: days payable outstanding
Average payables are 120,000 against COGS of 1,460,000. DPO = 120,000 ÷ 1,460,000 × 365 = 30 days. The firm takes 30 days to pay its own suppliers.
Example 4: putting the cycle together
CCC = DIO + DSO − DPO = 50 + 50 − 30 = 70 days. Cash is tied up for 70 days between paying suppliers and collecting from customers. The operating cycle (DIO + DSO) is 100 days; supplier credit funds 30 of them.
Example 5: a negative cash conversion cycle
A retailer sells for cash (DSO 5), turns stock fast (DIO 20), and pays suppliers slowly (DPO 45). CCC = 20 + 5 − 45 = −20 days. Suppliers finance the business — cash arrives before the bills are due.
Three expert tips for managing the cycle
Attack all three levers, not just one
Shortening the CCC means selling inventory faster, collecting receivables sooner, or paying suppliers later. The biggest, most durable gains usually come from improving all three modestly rather than squeezing one hard.
Don’t stretch payables at the cost of terms
Extending DPO frees cash, but pushing suppliers too far can cost early-payment discounts or damage the relationship. Weigh the cash benefit against discounts lost and goodwill spent.
Use averages and watch the trend
Compute DIO, DSO, and DPO on average balances, and track the CCC over several periods. A cycle that is creeping upward warns of working-capital strain long before it shows up as a cash shortage.
Why the cycle drives cash and growth
The cash conversion cycle matters because it determines how much cash a business must keep locked in working capital, and therefore how growth affects its cash position. A company with a long cycle has a large amount of cash committed to inventory and receivables at all times, and every increase in sales requires proportionally more, so growth consumes cash and often forces borrowing to fund it.
A company with a short cycle keeps little cash tied up and needs far less additional working capital to grow, so expansion is cheaper and less risky. And a company with a negative cycle, where suppliers fund the operation, actually generates cash as it grows, because each new sale collects money before the associated supplier bill comes due. This is why the cash conversion cycle is not just an efficiency statistic but a strategic variable: it shapes how self-funding a business is.
Framing the result as days of cash tied up, as this calculator does, keeps that consequence in view rather than treating the number as an abstraction.
How to shorten the cycle
Because the cash conversion cycle is built from three components, shortening it means improving one or more of them, and seeing them separately shows where the opportunity lies. Cutting days inventory outstanding, through better forecasting, leaner stock, or faster production, releases the cash held in unsold goods, though it must be balanced against the risk of stockouts. Cutting days sales outstanding, through prompt invoicing, tighter credit terms, early-payment incentives, and disciplined collections, brings customer cash in sooner.
Extending days payable outstanding, by negotiating longer supplier terms, keeps the company cash for longer, within the limits of good supplier relationships and the value of any early-payment discounts. The largest gain usually comes from whichever component is furthest from industry norms, which is why isolating the three, as this calculator does, is the first step: it tells you whether a long cycle is an inventory problem, a collections problem, or simply the natural shape of the business, and therefore where effort will pay off most.
Reading the cycle in context
A cash conversion cycle number means little in isolation and everything in context. The single most important comparison is against the industry, because the natural length of the cycle depends heavily on the business model: a grocer, a machinery maker, and a software firm will have wildly different cycles, and a figure that is excellent for one would be alarming for another.
The second comparison is against the company own history: a cycle that is lengthening over several periods warns of building inventory, slowing collections, or lost payable leverage, well before it shows up as a cash squeeze, while a shortening cycle signals improving efficiency. The third is against the company growth plans, since a business intending to grow fast needs a short cycle to avoid a cash crunch.
The interpretive note this calculator shows is a broad guide based on the length alone; the real reading comes from placing the cycle in these contexts, which the tool supports by making it quick to recompute for different periods and to compare the components.
Where the cash conversion cycle fits in the industrial-finance toolkit
The cash conversion cycle is the working-capital-timing member of this silo, and it links naturally to the others. It is the timing counterpart to the liquidity ratios in the financial-ratios calculator: those measure the level of short-term assets and liabilities at a point in time, while the cycle measures how long cash stays committed, and reading them together reveals short-term financial health more fully than either alone.
The cash a long cycle ties up has a cost, the company weighted average cost of capital from the WACC calculator, so shortening the cycle frees capital that carries a real charge. And the working capital the cycle governs is part of the invested capital in the ROI/ROIC and EVA calculators, so a shorter cycle, by reducing the capital employed, can lift return on invested capital and economic value added even if profit is unchanged.
Read across the silo, the cash conversion cycle connects operational working-capital management to the cost of capital and the returns and value it ultimately affects, all from one consistent set of figures.
Common mistakes to avoid
Several errors recur with the cash conversion cycle. The first is comparing a company cycle against a universal target rather than against its industry and its own history, when the natural cycle length is deeply industry-specific. The second is mismatching the balance-sheet figure and the flow, for instance pairing period-end inventory with annual COGS when the inventory swung sharply during the year; use average balances where the swing is material.
The third is treating a high DPO as unambiguously good, when paying suppliers too slowly can cost early-payment discounts and damage relationships, so the offsetting benefit has limits. The fourth is ignoring seasonality, since a single period-end snapshot can badly misrepresent a seasonal business typical cycle; look at the trend and, ideally, several points in the year.
And the fifth is confusing the cash conversion cycle with profitability, a company can be profitable yet have a punishing cycle that starves it of cash, or have a short cycle yet thin margins, so the cycle must be read alongside the profit and return measures. This calculator computes the figures exactly, but these judgments about context and inputs are yours.
The cycle across business models
Nothing illustrates the cash conversion cycle better than seeing how it differs across kinds of business, because the model itself dictates the shape of the cycle.
A large grocery or discount retailer is the textbook case of a negative cycle: it turns inventory over in days, collects from customers instantly at the till, yet pays its suppliers over weeks, so it is permanently holding suppliers cash and its cycle runs below zero. A subscription software company holds essentially no inventory and often bills in advance, so its cycle is short or negative almost by construction.
A heavy manufacturer sits at the other extreme: raw materials, work in progress, and finished goods pile up over a long production period, and industrial customers often pay on extended terms, so both DIO and DSO are large and the cycle can stretch across many months, requiring substantial working capital to fund.
A professional-services firm carries no inventory but may wait months to be paid, making its cycle essentially its collection period. Recognising which pattern a business follows is the first step in judging its cycle, because the same number of days can be excellent or alarming depending on the model, and this calculator lets you compute and compare any of them from the same inputs.
Cash conversion cycle versus the current ratio
It is worth contrasting the cash conversion cycle with the current ratio, because the two are complementary and together give a fuller picture of short-term health than either alone. The current ratio, current assets over current liabilities, is a level measure taken at a point in time: it asks whether there are enough short-term assets to cover short-term obligations right now. The cash conversion cycle is a timing measure taken over a period: it asks how long cash stays committed in the operating loop.
A company can look healthy on one and strained on the other. A business with a comfortable current ratio can still have a long cash conversion cycle that quietly ties up cash and forces borrowing to fund growth; conversely, a business with a modest current ratio but a very short or negative cycle may be in a strong cash position because its cash keeps cycling quickly.
Reading the two together, the level from the financial-ratios calculator and the timing from this one, is how you avoid being misled by either, and it is a large part of why this silo presents both.
Tracking the cycle over time
Like most financial metrics, the cash conversion cycle is far more informative as a trend than as a single figure. A cycle computed for one period is a snapshot that can be distorted by seasonality or a one-off swing in inventory or receivables; a series of them, computed period after period, reveals the direction the business is heading.
A steadily lengthening cycle is an early warning that often precedes a cash squeeze: it can mean inventory is building faster than it sells, customers are taking longer to pay, or the company has lost the payables leverage it once had, and it shows up in the cycle before it shows up in the bank balance. A steadily shortening cycle signals improving working-capital discipline and a business that is becoming more self-funding.
Because the drivers are the three components, tracking DIO, DSO, and DPO separately over time pinpoints exactly what is changing, whether a lengthening cycle is an inventory problem or a collections problem, so the fix can be targeted. This calculator makes that period-by-period tracking quick, which is how a snapshot becomes a genuine early-warning system.
The cost of a long cycle
It is easy to treat the cash conversion cycle as a purely operational statistic, but it has a direct financial cost that makes shortening it worthwhile in concrete money terms. Every day of cycle represents cash locked in inventory and receivables that could otherwise be earning a return or reducing debt, and that trapped cash carries the company cost of capital.
A rough sense of the cost is the working capital tied up multiplied by the weighted average cost of capital: a business with a long cycle funding a large working-capital balance at, say, a ten percent cost of capital is paying real money every year simply to keep that cash immobilised.
Shortening the cycle releases that cash, which can repay debt, fund growth without new borrowing, or be returned to owners, so the benefit of a shorter cycle is not abstract efficiency but a measurable reduction in financing cost. This is the bridge from the cycle to the rest of the finance toolkit: the days this calculator reports translate, through the cost of capital, into a currency figure that shows up in the returns and value the other tools measure.
Seen this way, a program to shorten the cycle is really a cash-release program, and its payoff can be estimated the same way any investment is: the cash freed, valued at the cost of capital, against the effort to free it. That framing often makes working-capital improvement one of the highest-return projects available to a business, because it requires no new assets, only tighter management of the ones already there.
A quick way to use the tool
To get the most from this calculator, a simple routine works well. If you have the financial statements, use the from-statements mode: enter inventory, receivables, and payables from the balance sheet and revenue and cost of goods sold from the income statement, choose the day basis your convention uses, and read off the three components, the operating cycle, and the cash conversion cycle. Look first at the headline cycle and its colour and note, then scan the three components to see which is largest and therefore which is driving the result.
If you instead already know the day-counts, switch to the direct-days mode and enter DIO, DSO, and DPO to explore scenarios: try shortening collections or extending payables and watch the cycle move, which shows how much cash each improvement would free. Either way, compute the cycle for more than one period if you can, so you see the trend rather than a single point, and compare the result against what is normal for the industry.
Run that way, the tool turns a set of balance-sheet figures into a clear, actionable read on how hard the company working capital is working, and it does so in seconds, so you can check a company, a scenario, or a whole series of periods without friction.
Frequently asked questions
What is the cash conversion cycle?
The cash conversion cycle, or CCC, measures how many days a company cash is tied up in its day-to-day operations, from the moment it pays for inventory to the moment it collects cash from the customer who buys it.
It captures the full round trip of working capital: cash goes out to buy or make goods, the goods sit as inventory, they are sold on credit and become receivables, and finally the customer pays and cash comes back in, offset by the time the company itself takes to pay its suppliers.
The shorter the cycle, the less cash is locked up in the business and the more is free for other uses; a negative cycle, where suppliers effectively fund operations before the company has to pay out, is a position of real strength. This calculator computes the cash conversion cycle from either your balance-sheet and income figures or the three day-counts directly, and shows the operating cycle and each component alongside it.
What is the cash conversion cycle formula?
The cash conversion cycle equals days inventory outstanding plus days sales outstanding minus days payable outstanding: CCC = DIO + DSO − DPO. Days inventory outstanding (DIO) is how long inventory sits before it is sold; days sales outstanding (DSO) is how long customers take to pay after a credit sale; and days payable outstanding (DPO) is how long the company takes to pay its own suppliers.
The first two added together, DIO + DSO, form the operating cycle, the full time from buying inventory to collecting cash; subtracting DPO credits the company for the time it delays paying suppliers, giving the net number of days its own cash is tied up. For example, with DIO of 50 days, DSO of 50 days, and DPO of 30 days, the operating cycle is 100 days and the cash conversion cycle is 70 days.
This calculator applies exactly this formula and reports every piece of it.
How are DIO, DSO, and DPO calculated?
Each component is a balance-sheet figure scaled to a number of days using a flow from the income statement. Days inventory outstanding is inventory divided by the cost of goods sold, times the number of days in the period: DIO = (inventory ÷ COGS) × 365. Days sales outstanding is accounts receivable divided by revenue, times the days: DSO = (accounts receivable ÷ revenue) × 365.
Days payable outstanding is accounts payable divided by the cost of goods sold, times the days: DPO = (accounts payable ÷ COGS) × 365. The 365 can be replaced with 360, a common convention in some finance settings, and this calculator lets you choose. If you already know the three day-counts, you can enter them directly instead of the underlying amounts.
Computing them from the statements is more common for analysis, while entering the days directly is handy when you have them from another source or want to explore scenarios quickly.
What is the operating cycle, and how does it differ from the CCC?
The operating cycle is the first two components of the cash conversion cycle added together: days inventory outstanding plus days sales outstanding. It measures the total time from acquiring inventory to collecting the cash from selling it, ignoring how the purchases were financed.
The cash conversion cycle then subtracts days payable outstanding from the operating cycle, crediting the company for the time it takes to pay its suppliers, which effectively finances part of that operating period. So the operating cycle is the gross duration of the working-capital process, while the cash conversion cycle is the net duration that the company own cash actually funds.
The gap between them is exactly DPO: a company that pays suppliers slowly has a cash conversion cycle much shorter than its operating cycle, because the suppliers are carrying part of the load. This calculator shows both, so you can see the gross operating time and the net cash cycle side by side.
What does a negative cash conversion cycle mean?
A negative cash conversion cycle means the company collects cash from its customers before it has to pay its suppliers, so its suppliers are effectively financing its operations rather than the other way around. It arises when days payable outstanding is larger than the operating cycle, DIO plus DSO, which happens in businesses that sell quickly for cash or on short terms while paying suppliers on long terms.
Large retailers and many online marketplaces are the classic examples: they sell inventory and collect from customers in days, but pay suppliers over weeks or months, so at any moment they are holding their suppliers money. A negative cycle is a genuine competitive advantage, because it means growth generates cash rather than consuming it, funding expansion from the working-capital float.
This calculator highlights a negative result and colours it green, since it is one of the strongest positions a business can be in on working capital.
Why does a shorter cash conversion cycle matter?
A shorter cash conversion cycle means less of the company own cash is locked up in inventory and unpaid customer invoices at any time, which frees that cash for other uses, paying down debt, investing, or simply providing a safety cushion, and reduces the need to borrow to fund working capital. It also tends to signal operational efficiency: a short cycle usually reflects fast inventory turnover, prompt collections, and sensible payment terms, all signs of a well-run operation.
Perhaps most importantly, a short cycle makes growth cheaper. A company with a long cycle must fund more working capital every time it grows, so expansion drains cash; a company with a short or negative cycle can grow with far less additional cash, sometimes generating cash as it expands.
This is why analysts and managers watch the cash conversion cycle closely and work to shorten it, and why this calculator frames the result in terms of cash tied up rather than as an abstract number of days.
How can a company shorten its cash conversion cycle?
There are three levers, one for each component. To reduce days inventory outstanding, a company can turn inventory over faster, through better demand forecasting, leaner stock levels, or quicker production, so less cash sits in unsold goods. To reduce days sales outstanding, it can collect from customers faster, by tightening credit terms, invoicing promptly, offering early-payment discounts, or improving collections, so cash comes in sooner.
To increase days payable outstanding, it can take longer to pay suppliers, by negotiating extended terms, though without straining supplier relationships or forgoing worthwhile early-payment discounts. Because the cash conversion cycle is DIO + DSO − DPO, improving any of the three shortens the cycle, and the biggest gains often come from whichever component is most out of line with industry norms.
This calculator makes the three components visible separately, so you can see exactly which one is driving a long cycle and where the opportunity to shorten it lies.
Does the cash conversion cycle vary by industry?
Yes, enormously, which is why the cycle should always be compared against industry peers rather than a universal target. A supermarket or fast-food chain turns inventory over in days and collects mostly in cash, so it can have a very short or negative cycle. A heavy manufacturer with long production times and customers who pay on extended terms can have a cycle of many months.
A software or services business may carry almost no inventory, making its cycle essentially the collection period alone. Because the natural length of the cycle depends so much on the business model, a cash conversion cycle that is excellent for one industry may be poor for another, and the meaningful comparison is against similar companies and against the company own trend over time.
This calculator gives a broad interpretive note based on the length, but the real judgment comes from that industry and historical context, which the tool makes easy to explore by recomputing quickly for different periods.
Should I use average or period-end balances?
The components of the cash conversion cycle pair a balance-sheet figure, inventory, receivables, or payables, which is measured at a point in time, with an income-statement flow, COGS or revenue, which is earned over the whole period. To match them properly, analysts often use the average of the beginning and ending balance for the balance-sheet figure, which better represents the typical level held across the period during which the sales and costs occurred.
Using the period-end figure is a common simplification and is fine for a quick estimate or when the balance did not swing much, but it can distort the days for a business whose inventory or receivables changed sharply during the period, or one that is highly seasonal.
This calculator accepts whatever figures you enter, so you can supply averages for the most accurate result or period-end figures for a quick one; the arithmetic is the same, and the choice of input is yours based on the precision you need.
Does this calculator store the numbers I enter?
No. The calculator runs entirely in your browser. The balance-sheet and income figures, or the day-counts, that you enter are never sent to our servers, stored, or shared. You can use it freely for confidential figures. See our Privacy Policy for details.
Is the cash conversion cycle calculator free to use?
Yes. This calculator, like every tool on OpsCalculators, is free and needs no account or sign up. There is no paywall and no limit on how many calculations you can run, and you can switch between the from-statements and direct-days input modes and change the inputs as often as you like.
How does the cash conversion cycle relate to working capital?
The cash conversion cycle is essentially the timing dimension of working capital. Working capital, current assets minus current liabilities, measures the money tied up in day-to-day operations at a point in time, while the cash conversion cycle measures how long that money stays tied up.
The two are closely linked: a longer cycle means more working capital is required to run the business at a given level of sales, because cash is committed for longer, whereas a shorter cycle frees working capital. This is why the cash conversion cycle is a key input to working-capital and cash-flow planning, and why it complements the liquidity ratios that measure the level of short-term assets and liabilities.
A company can have a healthy current ratio yet a long cash conversion cycle that quietly strains its cash, so reading the cycle alongside the liquidity ratios, as this silo lets you do, gives a fuller picture of short-term financial health.
Related industrial finance calculators
More tools in this silo. Return to the Industrial Finance hub for the full set.
Sources, disclaimer and editorial transparency
Method follows the standard treatment of the cash conversion cycle and working-capital metrics in financial analysis, including the texts by Brealey, Myers and Allen and the definitions used by the CFA Institute and the Corporate Finance Institute. See our Editorial Policy for how we research and review each tool.
This calculator is for education and planning and does not constitute financial, tax, or investment advice. Confirm any figure that informs a real decision with a qualified professional. OpsCalculators is operated by MAFHH INTERNATIONAL LTD; see our Privacy Policy.