Tool
The credit trap.
Growth does not kill distribution companies. The working capital that growth demands does. Enter your terms and see the gap before it arrives.
How it computes. Working capital days = receivables + inventory − payables. Each month, working capital = revenue ÷ 30 × working capital days. Cash from operations = gross profit − overheads − the increase in working capital. The ceiling is the monthly growth rate at which operating cash over twelve months equals zero.
Defaults are illustrative, not a claim about any company.
Built by Tanutejas Saraswat.