# Cash Conversion Cycle Component Recheck

Recheck the cash conversion cycle from its three components before quoting it.

## Scope
Preparation and review only. No account action or professional decision.

## Inputs
Days inventory outstanding, days sales outstanding, days payables outstanding and the reported cycle.

## Workflow
1. Record days inventory outstanding.
2. Record days sales outstanding.
3. Record days payables outstanding.
4. Compute the cycle as DIO plus DSO minus DPO and compare to the reported figure.

## Output contract
period | dio | dso | dpo | ccc | reported | difference

## Fictional acceptance test
Fictional components are DIO 40, DSO 55 and DPO 30: the cycle is 40 + 55 - 30 = 65 days; the draft says 25 days from subtracting DSO instead, an understatement of 40 days.

## Review gates
Keep original values, source IDs and version dates. Unknown facts stay held. Use qualified review for hiring, legal and accounting conclusions. No send, share, sign-in, scheduling, ledger change or payment. Fictional contract review is not a live account compatibility test.

## Method source
https://corporatefinanceinstitute.com/resources/accounting/cash-conversion-cycle/

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