Locksmith Cash Conversion Cycle
Cash cycle = inventory days + receivable days − payable days
Gather a completed job sheet, supplier quotes and a crew schedule. Include hardware, dispatch time, and travel. The starting figures are examples. Replace them with your own records.
Formula and worked example
Cash cycle = inventory days + receivable days − payable days
| Input | Example |
|---|---|
| Inventory holding days | 20 days |
| Receivable days | 35 days |
| Payable days | 25 days |
| Calculated result | 30 days |
Choose reliable inputs
Plan materials, travel and crew time before committing to a price. For this locksmith calculation, use a completed job sheet, supplier quotes and a crew schedule and a consistent definition of one callout.
- Hardware: include the portion belonging to this callout or reporting period, and record where the value came from.
- Dispatch time: include the portion belonging to this callout or reporting period, and record where the value came from.
- Travel: include the portion belonging to this callout or reporting period, and record where the value came from.
Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.
What does a negative cash cycle mean?
On these averages, customers pay before supplier-related cash goes out. It does not guarantee every transaction has that timing.
A simplified operating-cycle metric; service businesses may have little physical inventory.
What if this input changes?
If inventory holding days rises by 10%, this example changes by 2 days. This shows the effect of one change; it does not predict what will happen.
Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.