Working Capital Cycle
Cash Conversion Cycle
Credit & DebtThe number of days cash stays locked in operations: inventory days plus receivable days minus payable days.
Formula
Cycle = Inventory Days + Receivable Days - Payable Days
Why it matters
A lengthening cycle silently consumes cash even when profits look fine, and is a classic early sign of channel stuffing or weakening customers.
Indian example
Related terms
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