In-depth examination of working capital management best practices, analyzing receivables, inventory, and payables optimization strategies to unlock hidden cash and improve liquidity.
Cash Conversion Strategies for Mid-Market Companies
May 10, 2024
Mid-market companies can unlock $50-80K per $1M revenue through systematic working capital optimization, with average cash conversion cycle improvements of 18-25 days achievable within 12 months.
Companies with optimized working capital achieve 15-20% higher enterprise valuations
Days Sales Outstanding (DSO) reduction of 10 days releases 2.8% of annual revenue as cash
Inventory optimization through just-in-time practices reduces holding costs by 20-30%
Strategic payment term negotiations can extend Days Payables Outstanding (DPO) by 12-15 days
Research draws from financial analysis of 340+ mid-market companies, working capital benchmarking across 12 industries, and case studies documenting $180M+ in cash released through optimization initiatives.
Bloomberg Terminal, Capital IQ, Industry Association Data, Client Case Studies
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