Our Working Capital Analysis Methodology
We've spent years refining our approach to working capital analysis for Australian businesses. Our method combines traditional financial principles with modern cash flow optimization techniques that actually work in today's market.
The Five-Phase Analysis Framework
Current State Assessment
We start by mapping your existing cash conversion cycle. This means looking at how long cash sits in inventory, how quickly customers pay you, and when you pay suppliers. Most businesses are surprised to learn they have 30-45 days of unnecessary cash tied up here.
Benchmark Analysis
Your numbers get compared against industry standards and top performers. We use Australian market data because what works in the US doesn't always translate here. Construction companies in Sydney face different challenges than mining operations in Perth.
Gap Identification
This is where we find the opportunities. Maybe your inventory turnover is slow, or payment terms aren't optimized. We've seen companies free up 0K just by adjusting when they pay suppliers relative to customer payments.
Strategy Development
Every recommendation comes with implementation timelines and expected outcomes. We don't suggest changes without explaining exactly how they'll impact your cash position and what resources you'll need.
Monitoring Framework
You get a dashboard showing key metrics and early warning indicators. Most clients check this weekly during the first six months, then monthly once the new processes are embedded.
Results That Matter
Our methodology typically identifies 15-25% improvements in cash conversion cycles. But numbers mean nothing without context. We focus on sustainable changes that strengthen your business operations while freeing up capital for growth opportunities.
Why Our Approach Works
Australian Market Focus
Our benchmarks and strategies account for local market conditions, supplier relationships, and regulatory requirements. Generic international advice often misses crucial details about how Australian businesses actually operate.
Implementation Support
Analysis without execution is just expensive reporting. We work with your team to implement changes, troubleshoot problems, and adjust strategies based on real-world feedback from your operations.
Technology Integration
Our recommendations work with your existing systems. Whether you use Xero, MYOB, or enterprise-level ERP software, we design solutions that enhance rather than replace your current processes.