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Liquidity Analysis

Working Capital Calculator

Analyze your business liquidity, cash flow, and operational efficiency.

Current Assets
Total: $110,000
Current Liabilities
Total: $43,000
Operating Metrics
Additional business data

Net Working Capital

$67,000

$110,000

Current assets

$43,000

Current liabilities

11.2%

Of annual revenue

Liquidity Ratios
Key metrics for short-term financial health
Current Ratio2.56
RatingExcellent

Current Assets ÷ Current Liabilities

Quick Ratio1.63
RatingExcellent

(Cash + A/R) ÷ Current Liabilities

Working Capital Turnover9.0x
EfficiencyHigh

Revenue ÷ Working Capital

Cash Conversion Cycle75 days
PerformanceNeeds Improvement

DIO + DSO - DPO

Cash Conversion Cycle Analysis
How long it takes to convert investments into cash
Days Inventory Outstanding

60

How long inventory sits

Days Sales Outstanding

45

Collection period

Days Payable Outstanding

30

Payment delay

Cash Flow Impact$123,287.671
Daily revenue needs tied up$1,643.836
Annual working capital impact$123,287.671
Efficiency Metrics
How effectively you manage working capital components
Asset Turnover5.5x
Receivables Turnover13.3x
Inventory Turnover10.3x
Payables Turnover18.0x
A/R as % of Revenue7.5%
Inventory as % of COGS9.7%
A/P as % of COGS5.6%
Cash as % of Revenue4.2%
Improvement Scenarios
Potential cash flow improvements from operational changes

Improve Collections

Reduce collection period by 10 days

+$16,438.356

Cash freed up

New CCC65 days
Improvement10 days

Optimize Inventory

Reduce inventory turnover by 15 days

+$24,657.534

Cash freed up

New CCC60 days
Improvement15 days

Extend Payables

Negotiate 45-day payment terms

+$24,657.534

Cash freed up

New CCC60 days
Improvement15 days

Working Capital Insights

  • • Your business has $67,000 in excess working capital
  • • Cash conversion cycle of 75 days ties up $123,287.671
  • • Current ratio of 2.56 indicates excellent liquidity
  • • Consider improving collection period or inventory turnover to free up cash
  • • Excellent working capital efficiency - you're getting good revenue per dollar invested
Meet Sarah

Your AI Phone Answering Service

Sarah is an AI receptionist that answers your business calls 24/7 with a natural, human-like voice. She handles customer inquiries, takes messages, and filters out spam calls so you can focus on growing your business.

24/7 Call Answering

Sarah answers every call professionally, even when you're busy, after hours, or on vacation.

Never Miss a Lead

Sarah captures detailed caller information and takes perfect messages, ensuring no business opportunity is lost.

Smart Spam Filtering

Sarah identifies and politely handles spam calls, robocalls, and telemarketers without interrupting your work.

Sarah in Action

How Sarah handles your calls

Client: John Smith
CONNECTED
New Lead: Maria Garcia
MESSAGE TAKEN
Insurance Telemarketer
FILTERED
Car Warranty Robocall
BLOCKED

Zero interruptions to your important work

Optimize Cash Flow

Better Working Capital Needs Better Communication

You've optimized your working capital. Now accelerate collections and improve customer relationships with Sarah's professional communication services.

Accelerate Collections

Sarah can follow up on overdue accounts, handle payment inquiries, and coordinate with customers to reduce your collection period.

Improve Cash Flow

Better customer communication leads to faster payments and improved cash conversion cycles, freeing up working capital.

Maintain Customer Relationships

Professional handling of payment discussions and account inquiries helps preserve valuable customer relationships.

“Sarah helped us reduce our collection period from 52 to 38 days, freeing up $180,000 in working capital without any awkward customer conversations.”

— Rachel Martinez, CFO

Cash Flow Impact

Working capital optimization

$67,000

Current working capital

75 day cycle
Collection Performance

Payment Follow-ups

Handled professionally

94%

success rate

Collection Period

Average days

37

vs 45 before

Optimize Your Working Capital Management

Improve cash flow, accelerate collections, and enhance customer relationships with Sarah's professional communication services.

No credit card required • Setup in 5 minutes • Cancel anytime