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working-capital-optimizer

Compute DSO, DIO, DPO, and cash conversion cycle to quantify and release trapped working capital.

Updated Aug 22, 2026
Search Tags:#cash flow#DSO#working capital#dpo#receivables#cash conversion cycle#inventory turnover
One-click install
npx skills add https://github.com/fritzgeraldz/Vibe-Managing --skill working-capital-optimizer-fritzgeraldz
Or copy as Structured Prompt for Agent▼
Please help me install this Agent Skill.
Skill: working-capital-optimizer
Source: https://github.com/fritzgeraldz/Vibe-Managing/tree/main/skills/finance/working-capital-optimizer
Command: npx skills add https://github.com/fritzgeraldz/Vibe-Managing --skill working-capital-optimizer-fritzgeraldz

SYSTEM DOCUMENTATION & REQUIREMENTS

What problem does it solve? Cash gets trapped in receivables, inventory, and payables, and most founders cannot see how much or which lever to pull first. This Skill measures the cash conversion cycle, compares actual collection and payment days against granted terms, and turns the biggest hidden cash lever into a prioritized, quantified action plan. ## Core Features & Use Cases - Cycle Diagnostics: Compute DSO, DIO, DPO, and the cash conversion cycle, then benchmark each against customer terms, supplier terms, and industry norms. - Cash-Per-Day Quantification: Calculate how much cash each one-day improvement in DSO, DIO, or DPO releases, and rank levers by cash freed versus risk. - Use Case: A founder with $394k in receivables, net-30 customer terms, and net-45 supplier terms learns that tightening collections to terms frees roughly $171k and paying to full supplier terms retains roughly $107k, cutting the cycle from 55 to about 9 days. ## Quick Start Analyze my working capital using annual revenue of $2.72M, COGS of $1.70M, receivables of $394k, inventory of $114k, payables of $103k, net-30 customer terms, and net-45 supplier terms, and tell me what to fix first.

Frequently Asked Questions about working-capital-optimizer

High-intent search queries and answers about installing and using this skill.

FAQPage Schema
How do I calculate the cash conversion cycle for my business?▼

The cash conversion cycle equals DIO plus DSO minus DPO. Compute DSO as receivables divided by daily revenue, DIO as inventory divided by daily COGS, and DPO as payables divided by daily COGS, then combine them to see how many days cash is tied up.

How to free up cash trapped in accounts receivable?▼

Compare your DSO against the customer terms you granted; a gap means a collection problem. Tighten collections with reminders, deposits, milestone billing, or early-pay discounts, and review individual slow or large accounts since averages hide concentration.

Does working capital analysis work for service businesses without inventory?▼

Yes, service businesses treat inventory and DIO as not applicable and focus on DSO and DPO. The analysis still quantifies cash trapped in receivables and cash retained by paying suppliers to, but not beyond, their terms.

When should I not stretch accounts payable to preserve cash?▼

Never stretch payables beyond supplier terms as a durable fix, since it risks supply disruption, quality degradation, or stopped shipments. Paying faster than terms also forgoes free trade credit, so the target is paying exactly at terms.

What financial data is needed for a working capital analysis?▼

You need revenue, COGS, and current balances for receivables, inventory, and payables, plus the credit terms granted to customers and received from suppliers. Average balances improve accuracy, and industry benchmark days are optional but useful.

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