Cash Flow Tool 24

Cash Flow
Gap

The gap between paying your supplier and getting paid by your retailer is real cash out of pocket. Model the days and dollars of your working capital gap.

1Revenue Base

Monthly WS Revenue ($)

Avg Order Value ($)

Monthly Orders

Computed automatically

2Payables - Supplier Terms

Supplier Payment Terms (days)

Days to pay supplier after shipment

COGS as % of Revenue (%)

Monthly COGS ($)

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3Receivables - Customer Terms

Customer Net Terms (days)

Days until retailer pays you

Early Pay Discount (%)

Discount to incentivize faster payment

% Accounts Taking Early Pay

4Carrying Context

Avg Days Inventory On Hand

Financing Cost (% p.a.)

Annualized Gap Cost ($)

—

Cash Flow Gap (Days)—

Gap
Days

—

Cash
Gap ($)

—

Monthly
Gap Cost

—

Cash Conversion Cycle

Days Inventory Outstanding—

+ Days Sales Outstanding—

- Days Payables Outstanding—

Cash Conversion Cycle (days)—

Monthly revenue base—

Cash gap per month ($)—

Early Pay Discount Economics

Cost of EPD (annual %)—

EPD vs financing rate—

P23-EDU · TWENTY3 IntelligenceCash Flow Tool 24·Cash Flow Gap Calculator·Cash Conversion Cycle·Days Inventory + Sales + Payables·P23-EDU · TWENTY3 IntelligenceCash Flow Tool 24·Cash Flow Gap Calculator·Cash Conversion Cycle·Days Inventory + Sales + Payables·