Cash cycle and working capital
to determine how long the money remains tied up between inventory, sale and collection.
One-time payment
$59
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Recognize the problem
Three signals that the current approach is costing clarity.
Do we use ending balance or average?
Does the denominator correspond to the indicator?
Does reducing days deteriorate service or conditions?
Practical outcome
to determine how long the money remains tied up between inventory, sale and collection.
What is included
The working pieces, connected.
Minimum scope
Guía PDF, registro editable, caso ficticio resuelto y memo de decisión.
Safe preview
Annual credit sales of US$365,000 and average accounts receivable of US$60,000 yield 60 days. Annual cost of goods sold of US$219,000 and average inventory of US$30,000 yield 50 days. Annual purchases of US$219,000 and average accounts payable of US$24,000 yield 40 days. The cycle is 60 + 50 − 40 = 70 days. Reducing collection from 60 to 50 days frees up approximately US$10,000 under sales and other constant assumptions.
The preview shows structure and a limited example; it does not expose the complete paid editable or delivery file.
How it works
From context to a reviewable output.
- 1
Define the context and decision.
- 2
Complete the required inputs.
- 3
Produce a first working version.
- 4
Review, validate and adapt.
This is for
For operations and sales managers.
This is not for
Those who expect automatic decisions or guaranteed business results.
Method and limits
Useful when judgment stays in the loop.
Methodology and author
Use average balances and cash flows for the same period. Calculate days of accounts receivable with credit sales, days of inventory with cost of goods sold, and days of accounts payable with comparable purchases. Document approximations when purchases are missing; do not silently replace them with sales. Designed and signed by Julio Alonzo.
Requirements and limitations
Do not treat suppliers other than inventory as if they were comparable; exclude items not included in the calculation. An increase in sales can consume cash even if the cycle remains unchanged.
Cutoff date: 2026-09-30
FAQ
Before purchasing.
Answers derived from the product file and its commercial kit.
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$59
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- ✓ 15-day refund period
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