Every dollar you spend on inventory leaves your bank account long before a customer pays you back. This simulator shows how many days your cash sits trapped between paying suppliers and collecting from customers - and how inventory, receivables and payables terms move that gap.
CCC measures how many days of cash are trapped in operations: money leaves when you pay suppliers and only returns when customers settle their invoices. The longer that gap, the more working capital you must borrow or tie up just to keep trading.
Three clocks run at once: inventory days (DIO) until goods sell, receivable days (DSO) until customers pay, and payable days (DPO) of free supplier credit. CCC = DIO + DSO − DPO. Each day of CCC costs real money - a slice of daily revenue and COGS financed at your cost of capital.
Shrink inventory and receivables before squeezing suppliers. Faster turns and quicker collections cut CCC without side effects; stretching DPO looks free but starves the suppliers you depend on. Firms like Dell and Amazon push CCC negative - customers pay before suppliers are due.
