There are some factors to remember when calculating the Cash Conversion Cycle. Days Inventory Outstanding (DIO) is the first part of the formula, which refers to the total time it takes to turn inventory into finished products and sell them. The second element is your DSO, or Days Sales Outstanding, which is the average number of days your accounts receivables have been waiting for payment. Days Payable Outstanding (DPO) is the total time it takes a company to buy from its suppliers on accounts payable. Once you have calculated each part of the formula you can calculate your CCC which is the DIO + DSO-DPO.