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StartupsVerified 2026-10-09
Working Capital & Cash Conversion Cycle Analyser
Work out how long your cash is tied up between paying suppliers and collecting from customers, and where the biggest improvement is available.
Profitable businesses run out of cash when too much of it sits in stock and unpaid invoices. This analyser works out how long your cash is tied up between paying suppliers and collecting from customers, how much money that represents, and where the biggest improvement is available.
Assumptions
- —Averages are used for inventory, receivables and payables. Opening and closing balances divided by two is usually close enough.
- —A 365-day year is assumed.
- —Days payables outstanding is computed on cost of goods sold rather than total purchases.
- —This is an indicative analysis based on figures you supply and does not replace a review of your books.
Frequently asked questions
It varies by sector. Manufacturers and distributors typically run 60 to 120 days; service businesses with little inventory are much shorter; retailers with fast stock turnover and supplier credit can be negative. The useful comparison is against your own trend rather than an industry average.
This tool is for indicative purposes only and does not constitute professional advice. Figures depend entirely on the inputs supplied. Verify with a qualified Chartered Accountant before acting.
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