How many days your cash is tied up.
Enter your inventory days, receivable days and supplier days. You see the days your cash is tied up, the working capital that represents, and the extra cash a year of growth draws.
What the calculator shows before you change a number
These panels use the starting figures in the calculator above. Replace them with yours and the answer moves.
Every day in the cycle is cash
The cycle is the time between paying for stock and being paid for it. Inventory days and receivable days lengthen it, and supplier days shorten it.
33days
Between paying for stock and being paid
Stock sits 35 days, customers pay in 28 and you pay suppliers in 30.
Working capital tied up as customers take longer to pay
- 2.33M14 days
- 3.25M21 days
- 4.18M28 days
- 5.10M35 days
- 6.02M42 days
Cash that one day holds
Of every hundred you tie up in stock and receivables
Funded by your suppliers 41
- 4,175,342Working capital tied up
- 1,043,836Extra cash for 25% growth
- 131,507Cash in one day of receivables
- 2,958,904Carried by your suppliers
Read the days first, then the cash
The cycle in days is the time between paying for stock and being paid for it. Inventory days and receivable days lengthen it, and supplier days shorten it. A longer cycle means you fund the gap from your own cash or from a facility.
The three amounts show where the money sits. Inventory and payables are valued on cost of sales, and receivables on revenue, so enter both figures for the same twelve months. Working capital is the sum of inventory and receivables less what suppliers are financing. The last line applies your growth rate to that balance at the same days, which gives the cash a year of growth draws.
A change of one day in any of the three moves working capital by a known amount, so you see where to act first. The calculator counts inventory, receivables and supplier credit as annual averages. Replace the starting figures with your own.
Fund growth from the days you control
Inventory financing and cash-conversion-cycle reviews work back from these three numbers to the supplier terms, stock rules and collection practice that set them. The Control Diagnostic sizes the capital at stake and the options open to you.
Related
- Working-capital managementThe cash held in stock, receivables and supplier terms, measured and released to fund growth.
- COD reconciliation diagnosticThe gap between COD collected and settled, and the yearly cost of slow settlement.
- Managed logistics financeWe run the finance work around your delivery every month, and you see what each order leaves in your bank.
Bring last month. Leave with a score.
Sit down with Qasim Abbas. One table, your numbers, and a clear read on where you stand against par.