Ep. 06 Working Capital Cash Hiding in Plain Sight

Upping Your Business Game: Financial Literacy with Income|Outcome

Summary

Working capital isn’t just accounting jargon — it’s cash flow hiding in plain sight. In this episode, we explore how decisions around receivables, inventory, and payables affect how much working capital your business ties up every day — and how to get some of that cash back.

If you’ve listened to our episode on the Cash Conversion Cycle, you’ll recognize some familiar territory — but this time, we’re zeroing in on operational levers and real-world changes that can help you unlock cash without borrowing a dime.

What You’ll Learn:

• What working capital really means — and why it matters
• Three key areas to target: receivables, inventory, payables
• How small changes in operations can free up big cash
• The link between working capital and the Cash Conversion Cycle
• A simple framework (DSO, DIO, DPO) to help you measure and act

Key Metrics Explained:
📊 DSO (Days Sales Outstanding)
📊 DIO (Days Inventory Outstanding)
📊 DPO (Days Payables Outstanding)
🧮 Together they form your Cash Conversion Cycle:
DSO + DIO – DPO = Time your cash is tied up

Put It Into Action:
✅ Use our Working Capital Impact Calculator — enter your numbers and see how small changes affect your cash flow
✅ Start a working capital conversation within your team or region
✅ Challenge yourself: Who needs to be involved to test this?

👉 Link to Calculator or Resource Page

Looking Ahead:
Working capital and the cash conversion cycle are two sides of the same coin. This episode helps you see how everyday business choices ripple through your balance sheet — and how to use that insight to fuel smarter decisions.