Executive Metrics
Cash Conversion Cycle
How efficiently does your business turn inventory into cash? The CCC tracks every stage — from the moment you buy stock to the moment a customer pays.
Executive Metrics
How efficiently does your business turn inventory into cash? The CCC tracks every stage — from the moment you buy stock to the moment a customer pays.
Cash Balance
$17,429,269
Active bank accounts
Open Receivables
$4,791
Unpaid invoices
Total Invoiced
$14,042
Last 30 days
About Cash Balance
The Current Cash Balance is the sum of all cumulative balances across every active bank account linked to the company in P21. It reflects what the GL shows as of the current accounting period — not necessarily real-time bank cleared funds.
Open Receivables represents the total dollar amount of approved invoices that have not yet been paid in full. It is calculated as invoice amount plus any memo amounts, minus terms discounts taken, bad debt written off, and payments already received.
Cash Conversion Cycle = Inventory Age + DSO − DPO
Avg Inventory Age
5345680.7d
30-day rolling
Days Sales Outstanding
10.2d
AR collection period
Days Payable Outstanding
0.0d
Vendor payment period
Cash Conversion Cycle
5345690.9d
InvAge + DSO − DPO
Average Inventory Age
Measures how long, on average, inventory sits before it is sold. Calculated as:
(Inventory Value ÷ COGS) × 30
Inventory value uses moving average cost for each SKU across all locations. COGS is the sum of shipping cost from invoices in the last 30 days. A lower number means inventory is moving faster, which frees up cash sooner.
Days Sales Outstanding (DSO)
DSO measures the average number of days it takes to collect payment after an invoice is issued. Calculated as:
Open Receivables ÷ (Total Invoiced ÷ AR Days)
The AR Days window is set in P21 System Settings under Number of Days to Use to Calculate Average Daily Sales. A rising DSO indicates customers are taking longer to pay, which strains cash flow.
Days Payable Outstanding (DPO)
DPO measures how long the company takes to pay its own vendors. Calculated as:
Open AP ÷ COGS × 30
Open AP is the sum of all approved, unpaid vendor invoices. A higher DPO means the company is holding onto cash longer before paying suppliers — which benefits the CCC. However, stretching payments too far can damage vendor relationships and lead to supply disruptions.
How to Interpret the Cash Conversion Cycle
The Cash Conversion Cycle (CCC) is the number of days between spending cash to acquire inventory and receiving cash from customers who bought that inventory. It is the single most important measure of working capital efficiency for a distributor.
Formula: CCC = Inventory Age + DSO − DPO
A lower CCC means your business converts its investments back to cash quickly. A negative CCC (rare in distribution) means you collect from customers before you pay suppliers — the ideal state. Watch for a rising CCC: it typically signals slow inventory movement, lengthening collection times, or early vendor payment — all of which reduce available cash.