Controlling operational payment and collection timelines is essential to prevent liquidity shortages. The cash cycle simulator is a practical tool designed to calculate the time your company takes between paying suppliers and collecting from customers, revealing the direct impact on working capital.
The automated spreadsheet evaluates your business's average turnover periods and visually demonstrates whether operations are running at healthy or risky levels for treasury.
What you will find
- Targeted input fields: an intuitive section to enter Days Sales of Inventory (DSI), Days Sales Outstanding (DSO), and Days Payable Outstanding (DPO) in days, alongside the daily operating cost in reais.
- Cash Conversion Cycle (CCC): automated calculation of the exact operational interval, with color-coded alerts (green, yellow, or red) to indicate the financial health of the metric.
- Cash trapped in operations: calculation of the total financial amount tied up in your company's operational flow.
Who it is for
- SME partners and directors who need to identify financial bottlenecks in inventory and credit sales.
- Financial managers and treasury analysts seeking to simulate working capital scenarios.
- Entrepreneurs who want to negotiate better payment or collection terms based on data.
How to use the spreadsheet
- Download and create a copy on your computer or Google Drive.
- In the simulator tab, fill in only the fields highlighted in light yellow with your company's average terms and daily costs.
- Review the cycle status generated by the color alerts and see how much capital can be freed up through adjustments to inventory, purchasing, and collection policies.
