The formula for the cash conversion cycle is: Days' inventory outstanding (DIO) + Days' sales outstanding (DSO) - Days' payable outstanding (DPO) Days' inventory outstanding (DIO) + Days' sales outstanding (DSO) + Days' payable outstanding (DPO) Days' inventory outstanding (DIO) - Days' sales outstanding (DSO) + Days' payable outstanding (DPO) Days' inventory outstanding (DIO) - Days' sales outstanding (DSO) - Days' payable outstanding (DPO)