Working Capital & Cash Conversion Cycle Model - DSO, DIO, DPO

This Excel model calculates and forecasts working capital by tracking the three cash conversion cycle drivers: Days Sales Outstanding (DSO), Days Inventory Outstanding (DIO), and Days Payable Outstanding (DPO). It combines these into the Cash Conversion Cycle, CCC = DSO + DIO - DPO, measuring how long cash is tied up in operations before returning as cash from sales.

Starting from monthly revenue, COGS, and balance assumptions, it projects Accounts Receivable, Inventory, and Accounts Payable month by month, then derives Net Working Capital and the cash impact of working capital changes over a twelve-month horizon. A sensitivity grid flexes DSO, DIO, and DPO to show how CCC and cash needs respond, and a dashboard surfaces the key KPIs at a glance. Automated checks validate that balances and ratios behave logically with no formula errors.

Who It Is For

Built for:

• CFOs, financial analysts, and FP&A teams needing a fast way to monitor and forecast working capital,

• Treasury professionals managing liquidity,

• Consultants benchmarking cash conversion performance,

• Finance students learning DSO, DIO, DPO, and CCC mechanics,

• Small business owners wanting a clear view of freeing up cash from receivables, inventory, and payables.
  
  

What Is Included

Part of the BK Finance Models series, built on the Playbook v3.0 standard with a 9-sheet architecture:

• 00 Cover,

• 01 Instructions,

• 02 Assumptions,

• 03 Inputs,

• 04 Calculations,

• 05 Dashboard (presents CCC, NWC, DSO, DIO, and DPO KPIs),

• 06 Sensitivity (stress-tests CCC across a DSO x DIO grid),

• 07 Checks (runs automated validation tests confirming the model is error-free),

• 09 Version History.
  
  

Inputs are color-coded for easy editing, calculations are automated and formula-driven.