Working Capital Analysis.
Working capital analysis looks at how much cash is tied up in receivables and inventory, and how supplier terms offset it. We measure your cash conversion cycle, find where it is longest (slow-paying customers, excess stock, short supplier terms) and give you a quantified plan with owners and targets to release cash.
Typically 3–4 weeks from receipt of ageing and inventory data; large inventories or multi-location operations take longer. Progress is then tracked monthly.
A partner — a chartered accountant or company secretary — from the first call to sign-off.
Based on your situation, and fixed in writing before any work starts.
Is this for you?
- Profitable businesses that are still short of cash
- Companies drawing heavily on cash credit or overdraft limits
- Manufacturers and distributors carrying high inventory
- Businesses buying from micro and small enterprises, which must be paid within the MSMED Act's 45-day limit
What you receive at the end.
- 01Working capital dashboard: receivable, inventory and payable days and cash conversion cycle
- 02Customer-wise collection analysis and overdue action list
- 03Slow-moving and non-moving inventory report
- 04Review of dues to micro and small suppliers
- 05Improvement plan quantifying cash released, with owners and timelines
Working Capital Analysis, step by step.
Typically 3–4 weeks from receipt of ageing and inventory data; large inventories or multi-location operations take longer. Progress is then tracked monthly.
- 1
Baseline metrics
We calculate receivable, inventory and payable days and the cash conversion cycle for the last 12–24 months, by segment where possible.
- 2
Receivables review
We analyse ageing by customer, agreed credit terms against actual collection, disputes and billing delays.
- 3
Inventory review
We review stock ageing, slow-moving and non-moving items, reorder levels and stock held against confirmed orders.
- 4
Payables review
We review supplier terms and payment practices, including dues to micro and small enterprises under the MSMED Act's 45-day rule.
- 5
Improvement plan
We quantify the cash released by each action, agree targets and owners, and track progress through the monthly MIS.
What we need from you.
Don't have everything yet? We send a short checklist after the first call and work with what you have.
- Receivable and payable ageing reports for the last 12 months
- Inventory ageing and stock movement reports
- Customer and supplier credit terms and key contracts
- Working capital sanction letter and drawing power statements
- List of suppliers registered as micro or small enterprises (Udyam)
The fee depends on your situation. After a short call, the partner who will do the work tells you what's involved and gives you a fixed fee in writing — before any work begins.
- Government fees and statutory charges are billed at actuals.
- When you pay — upfront, in stages or on completion — is agreed in writing with the fee.
Questions about Working Capital Analysis.
Ready to discuss Working Capital Analysis?
30-minute confidential call — no proposal, no commitment. A partner will write back within one business day.