Diagnose cash conversion cycle drivers that can make profitable growth cash-hungry.
The squeeze Gross margin is 24%, but cash is tied up for 107 days: 71 days inventory + 64 days receivables - 28 days payables. The question is why profitable growth needs so much cash. CCC walk DIO + DSO - DPO Use the cash conversion cycle to see where operating cash gets stuck. Look only at margin Misses timing pressure. You know whether the fix is inventory, collections, supplier terms, or mix. Margin measures profit per sale; cash conversion measures how long the sale takes to fund itself. 01 Driver 02 Control 03 Action Read the cycle DIO is…
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