Category: Financial Analysis

2 articles

Financial Analysis

The Cash Conversion Cycle Explained: How to Calculate DIO, DSO and DPO to Free Up Cash

Profitable on paper but perpetually short on cash? The cash conversion cycle reveals exactly how many days your money is trapped in stock, unpaid invoices and supplier terms – and shows precisely where to act. Using a worked example from a bespoke furniture maker, this guide walks through calculating DIO, DSO and DPO, and turning those figures into real, freed-up cash.

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