Real Cash Earnings · Intermediate · Pro filter
Cash conversion cycle: what it means and how to read it
Days between paying for materials and getting paid by customers: inventory days + receivable days − payable days.
What is Cash conversion cycle?
Days between paying for materials and getting paid by customers: inventory days + receivable days − payable days.
A worked example
60 inventory days + 45 receivable days − 30 payable days = 75 days.
Why does Cash conversion cycle matter?
The shorter it is, the less cash is stuck in the business.
How do you read Cash conversion cycle?
Shorter is better. Negative is excellent: suppliers are funding the business.
Lower is usually better.
What is a typical Cash conversion cycle in India today?
The median across the 4394 listed companies that report it, as of 12 Oct 2026. Half sit above each figure and half below.
By company size
Median
Large Cap · 71 companies20
Mid Cap · 119 companies39.8
Small Cap · 4204 companies90.8
By industry
Median, largest industries first
Pharmaceuticals · 202116.0
Computers - Software & Consulting · 5853.5
Refineries & Marketing · 830.0
Power Generation · 29-0.2
Heavy Electrical Equipment · 43109.8
Auto Components & Equipments · 11560.4
Cement & Cement Products · 3228
Civil Construction · 12473.6
Aerospace & Defense · 32219.6
2/3 Wheelers · 10-7.2
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