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-- days
Contribution Margin 2 (CM2) Calculator
Days of Inventory Outstanding (DIO)
DIO: --
30 – 60 days
Shows how long inventory stays before being sold. Lower is preferable.
Days of Sales Outstanding (DSO)
DSO: --
30 – 90 days
Measures the average time taken to collect receivables. Lower values indicate efficient collections.
Days of Purchase Outstanding (DPO)
DPO: --
30 – 90 days
Indicates the average payment period for suppliers.
Result:
CCC[DIO + DSO - DPO]-- days