Glossary/Marketing Finance/Cash Conversion Cycle
Marketing Finance
Cash Conversion Cycle
The days between paying for inventory and collecting cash from customers, showing how long cash is tied up in operations.
By Brandon Mina·CEO, BrandPilot AI·Updated November 2026
Short answer
The cash conversion cycle is the number of days between paying for inventory and collecting cash from customers, showing how long cash is tied up in operations. It combines days inventory outstanding and days sales outstanding, minus days payables outstanding. A shorter cycle frees cash for growth, which matters especially for inventory-heavy ecommerce brands.