SME cashflow health tool

Unified Working Capital Analyzer

Modular calculator for Debtor Days, Inventory Days, Creditor Days, Cash Conversion Cycle (CCC) and Working Capital Requirement (WCR) - with built in diagnostic insights for SMEs and bankers.

1. Enter your working capital data

Module A - Debtor Days (DSO) Receivables collection
Show
Annual credit sales (RM)
Total yearly sales on credit terms (exclude cash sales if possible).
Trade receivables (RM)
Closing trade debtors balance from your latest financials.
Debtor Days (DSO)
- days
Module B - Inventory Days (DIO) Stock holding
Show
Annual cost of goods sold (COGS) (RM)
Use annual COGS figure, not total sales.
Inventory / stock on hand (RM)
Closing inventory value from your latest financials.
Inventory Days (DIO)
- days
Module C - Creditor Days (DPO) Supplier terms
Show
Annual purchases (RM)
Total purchases for the year (ideally on credit).
Trade payables (RM)
Closing trade creditors balance from your latest financials.
Creditor Days (DPO)
- days

Tip: You can open and fill modules A to C one by one. The Cash Conversion Cycle (CCC) and Working Capital Requirement (WCR) on the right will update automatically once there is enough data.

2. Cash conversion cycle, WCR and insights

Cash conversion cycle (CCC)

Debtor Days (DSO) - days
Inventory Days (DIO) - days
Creditor Days (DPO) - days
Cash Conversion Cycle (CCC) - days

Working capital requirement (WCR)

Daily operating cost RM 0.00
Working capital requirement RM 0.00
Receivables trapped above target RM 0.00
Excess inventory above target RM 0.00
Insights will appear here

Fill in at least your sales, COGS, receivables, inventory, purchases and payables on the left. The analyzer will calculate your cash conversion cycle and working capital requirement, then translate the numbers into plain language comments with suggested action points.

Debtor, inventory and creditor days vs simple benchmarks
Your company Target benchmark
Disclaimer: This analyzer uses standard formulas (DSO, DIO, DPO, CCC, WCR) and simple benchmark ranges to provide high level cashflow diagnostics. It relies completely on figures you enter and does not replace detailed accounting work, audited statements or a full credit assessment. Always consult your accountant or bank before making funding decisions.

Why the cash conversion cycle (CCC) matters for SMEs

Many SMEs focus only on profit, but in practice it is the timing of cash that decides whether salaries, suppliers and loan instalments can be paid on time. The cash conversion cycle (CCC) measures how many days it takes to turn money paid to suppliers into cash collected from customers.

A shorter CCC usually means less dependence on overdraft facilities and short term borrowing. A longer CCC means a heavier working capital burden, which can be dangerous if sales slow down or banks tighten limits.

Three levers inside the CCC

  • Debtor Days (DSO) - how long customers take to pay you.
  • Inventory Days (DIO) - how long stock sits before being sold.
  • Creditor Days (DPO) - how long you take to pay suppliers.

The analyzer breaks these into modules so you can see which lever is putting the most pressure on your cash.

From CCC to working capital requirement (WCR)

Once CCC is known, it can be converted into a ringgit value. By multiplying the cash cycle days by the daily operating cost (based on COGS), you get a working capital requirement figure. This is a simple estimate of how much capital or bank facility is needed just to keep the cycle running.

For example, if your daily operating cost is RM20,000 and your CCC is 45 days, your working capital requirement is roughly RM900,000. This is a useful reference when discussing overdraft limits or term working capital loans with your banker.

Turning diagnostics into action

The analyzer does not stop at formulas. It also:

  • Flags slow collections and estimates how much cash is trapped in receivables.
  • Highlights excess stock and the value sitting in your store room.
  • Shows if supplier terms are too short compared to industry style benchmarks.

The recommendations section then suggests simple actions such as tightening credit control, reviewing reorder levels or negotiating longer terms with key suppliers. These are common levers SMEs can pull to relieve cashflow pressure without immediately resorting to more borrowing.

How to use this tool in bank discussions

When applying for working capital facilities, banks often ask for justifications such as:

  • Why is a certain overdraft limit required.
  • How many days are tied up in stock and receivables.
  • What is the average collection period and payment pattern.

By preparing your CCC and WCR using this analyzer, you can walk into the meeting with clear figures and explanations. This often leads to a more productive conversation and shows that management understands its own cash cycle.