Cash Cycle Leak Detective
Identify specific cash cycle vulnerabilities and calculate financial impact of improvement interventions
TechParts Manufacturing Current cash cycle: 45 days. Daily cash requirement: $12,000. Production takes 18 days, inventory sits 15 days, customer payment takes 30 days, supplier payment terms are Net 60. RetailGoods Distribution Current cash cycle: 38 days. Daily cash requirement: $8,500. You identify three problem areas: inventory aging (12 days), slow customer collections (18 days), supplier payment squeeze (8 days). Which improvement area typically offers the fastest payback? Consider which change requires least operational change. Why does multiplying daily cash requirement by days saved matter for prioritization? Think about financing costs and opportunity cost of capital. Points awarded for selecting…
Sign up free — one personalized lesson every day, matched to your role and goals.
Already have an account? Sign in