See your current access to capital using our Operating Cash Wheel. It helps you calculate your current and annual net operating cash cycle.
Step 1
Step 2
Step 3
Step 4
First, let’s look at the operating cash cycle for a typical business. (You’ll enter your own data on Step 3).
| Average days to produce goods | 12 | days |
| Average days of inventory | 15 | days |
| Average days of accounts receivable | 50 | days |
| Total operating cash cycle | 77 | days |
| Less: Average days carrying trade payables. | 30 | days |
| Net Operating Cash Cycle | 47 | days |
| # of Net Operating Cycles Annually | 7.8 | times |
Next Step >
In this scenario, you re-invest cash every
77 days
After considering your trade payables, you reduce that to every
47 days
Over the course of 365 days, you can spin the wheel
7.8 times
Let’s see the how funding receivables in one day and paying vendors in five days impacts that same business.
| Average days to produce goods | 12 | days |
| Average days of inventory | 15 | days |
| Average days of accounts receivable | 1 | day |
| Total operating cash cycle | 28 | days |
| Less: Average days carrying trade payables. | 5 | days |
| Net Operating Cash Cycle | 23 | days |
| # of Net Operating Cycles Annually | 15.9 | times |
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Next Step >
Every time you “spin the wheel” you generate gross profits
See the true cost of carrying your accounts receivable
Imagine the benefits of receiving cash in 24 hours for every new invoice
Slash the time you carry your trade payables
Imagine the vendor pricing discounts if you could pay within 5 days
Now, enter your data in the grey boxes below and click “Calculate” to see how many annual operating cycles your business has currently.
| days | ||
| days | ||
| days | ||
| Total operating cash cycle | days | |
| days | ||
| Net Operating Cash Cycle | days | |
| # of Net Operating Cycles Annually | times | |
In this scenario, you re-invest cash every
0 days
After considering your trade payables, you reduce that to every
0 days
Over the course of 365 days, you can spin the wheel
0 times
Here’s how much your business could benefit from having receivables funded in 1 day and paying vendors in 5 days.
| Average days to produce goods | days | |
| Average days of inventory | days | |
| Days of accounts receivable with BusinessManager | 1 | day |
| Total operating cash cycle | days | |
| Less: Average days carrying trade payables with BusinessManager | 5 | days |
| Net Operating Cash Cycle | days | |
| # of Net Operating Cycles Annually | times | |
| With BusinessManager, you could have more cash cycles annually! |
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Would you like to get a report showing how much you can improve your cash cycle using BusinessManager? Simply enter your name and email address below and we’ll send it to you.
Learn how your business can start benefiting from better cash flow today.
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