MSME Knowledge Hub
Financial Analysis · MSME Term Loans

DSCR Calculation for MSME Business Loans: Formula, Worked Examples and Banker's Perspective

Understand how cash generation is compared with loan repayment obligations, with a practical five-year illustration.

Published 14 October 2026 · Educational guide · All amounts in ₹ lakh unless stated

Cash Conversion Cycle Calculator

Enter annual figures and average working-capital balances in the same unit (for example, all in ₹ lakh). The calculator uses a 365-day year.

Enter your figures and select Calculate.

How the result is calculated

Inventory days = average inventory ÷ annual cost of goods sold × 365. Receivable days = average receivables ÷ annual credit sales × 365. Payable days = average payables ÷ annual credit purchases × 365.

CCC = Inventory Days + Receivable Days − Payable Days.

Read our step-by-step cash conversion cycle guide for interpretation and a worked example.

Illustrative planning tool. Credit-sales and credit-purchases data are preferable to total sales or total purchases where available.