Accounting · Odoo glossary
Cash Conversion Cycle
The cash conversion cycle estimates how long operating cash is tied up between paying suppliers and collecting from customers.
Definition
In general ERP practice
The cash conversion cycle estimates how long operating cash is tied up between paying suppliers and collecting from customers. Its conventional formula is inventory days plus days sales outstanding minus days payable outstanding.
In Odoo
Odoo Accounting and Inventory provide relevant receivable, payable, cost and stock data. The cited documentation does not define a single standard Cash Conversion Cycle report; calculate it using consistent periods and valuation bases, rather than combining unrelated snapshots.
Official Odoo documentation
The Odoo-specific explanation above is based on the documentation for Odoo 19. Features and workflows can differ in other versions.
Related glossary terms
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