Type
Representative / composite scenario (educational)
Topics
Working capital • cash conversion cycle • liquidity discipline
Scenario
A growing business reports higher sales and stable margins, yet cash is tightening. Receivables are aging, inventory is rising, and suppliers are applying pressure.
Decision tension
- How to stabilize liquidity without destroying growth?
- Which levers matter first: AR, inventory, supplier terms, pricing, financing?
Framework
- Quantify the cash trapped in AR and inventory (CCC).
- Segment customers and SKUs to find root causes.
- Implement a 30–60 day liquidity cadence with owners and thresholds.
- Reset commercial guardrails (terms, approvals, pricing discipline).
- Use financing only as a bridge—not as a substitute for discipline.