Overview
The company is profitable on paper but constantly short on cash. The P&L shows €200K profit. The bank account shows €50K. Where did €150K go? It is trapped in working capital: €80K in unpaid invoices (customers owe money), €40K in inventory (products sitting on shelves), minus €30K offset from payables (the company owes suppliers). The cash conversion cycle — the time between paying suppliers and collecting from customers — is 62 days. Every day in that cycle is a day the company finances operations from its own cash instead of from customer payments.
Working Capital Optimization analyzes the cash conversion cycle and identifies specific levers to free trapped cash — reducing receivables collection time, optimizing inventory turns, and managing payables timing to shorten the cycle and convert profits into actual bank balance.
What you get: - Cash conversion cycle calculation and benchmarking - Accounts receivable aging analysis with collection strategy - Accounts payable optimization with supplier relationship balance - Inventory turn analysis (if applicable) - Working capital improvement plan with quantified cash impact - Monthly monitoring dashboard
Built for: finance teams in businesses where profitability does not translate to cash availability — where understanding and shortening the cash conversion cycle frees tens or hundreds of thousands in trapped working capital.