Cash released by lever
- Collection GBP 394,521 · Payment GBP 170,959 · Stock GBP 213,699 · Total GBP 779,178
Financial Intelligence · Expanded Financial Intelligence
Working-Capital Optimization
Analyse receivables, payables, collection timing, payment terms, inventory-related liquidity and the cash conversion cycle.
Demonstration: Pinecrest Foods plc (fictional) · Food manufacturing. Fictional data and a scripted answer.
The situation
- Organisation
- Pinecrest Foods plc (fictional)
- Who is asking
- Group financial controller
- Industry
- Food manufacturing
- What happened
- The board wants to release cash from working capital before the next capital project, without damaging supplier relationships.
The question asked
How much cash could be released by changing collection, payment and stock days, and is any change too aggressive?
What it reads, and who can see the result
- Annual revenue and cost of sales exportFrom the group accounts.
- Receivables, payables and inventory balances exportMonth-end balances.
- Reads
- Annual revenue and cost of sales, and current days for receivables, payables and inventory.
- Does not read
- Individual customer or supplier accounts.
- Permission
- Group finance read access to the consolidation reports.
- Who sees it
- The group controller and treasurer.
Try it
Change the assumptions. Every result and the answer below are recomputed from them, and a warning appears when a result crosses a stated limit.
- Cash from faster collection
- GBP 394,521Revenue 24,000,000 per year.
- Cash from later payment
- GBP 170,959Cost of sales 15,600,000 per year.
- Cash from less stock
- GBP 213,699
- Total cash released
- GBP 779,178
- Payment days after the change
- 45 days
The answer
Simulated answer. Written for this fictional case, not produced by a live model. Only the figures in it are computed, from what you decided above.
These targets release about GBP 779,178.
Faster collection releases GBP 394,521, later payment GBP 170,959 and lower stock GBP 213,699 [S1][S2]. Collection and stock are in the company's own hands; payment days are a negotiation with suppliers, so the same amount of cash is not equally certain from each lever.
Treat the total as an upper bound for the targets chosen. The warning appears when payment days go beyond a level most supply terms allow.
Relies on: S1 · Group accounts, last yearS2 · Working-capital balances
No approval is needed for this result: it is read-only insight, and nothing consequential happens because of it.
What it produces
Order of work
- Start with collection and stock, which the company controls.
- Open supplier conversations only for the payment days actually needed.
Limits of this example
- Days are applied to annual figures; seasonality would change the timing of the release.
- Customer and supplier reaction is not modelled.
- This is a scripted demonstration on fictional data. No model was called and no real organisation, person or result is shown.
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