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Working-capital gap.
A profitable company can still run short of cash if it pays out long before it gets paid. This estimates your cash conversion cycle and the rough amount of working capital your trade ties up. A planning tool — not a Credicorp product.
- Cash conversion cycle—
- Working capital tied up (approx.)—
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Cash conversion cycle = receivables days + inventory days − payables days. The £ figure is a rough illustration based on average daily sales; it is not an accounting measure and should not be used for reporting. For the concept in full, see the cash conversion cycle guide below.
What the number tells you
A longer cycle means more of your money is locked up in stock and unpaid invoices at any moment — which is where a short, company-level bridge sometimes fits, and where speeding up collections or negotiating supplier terms often helps more. Read the cash conversion cycle and your statutory late-payment rights for the levers that shorten it.