Cash · Working Capital
Cash Conversion Cycle = DSO + DIO − DPO. Channel mix drives receivables; distributor stock drives inventory.
🧠 AI Advisor — what this is · focus · where to fix · what to do
What this is
Cash conversion cycle and working capital analysis for Everest Spices.
What to focus on
- Receivables: ₹2,356.7 lakh outstanding, with Export channel at ₹528.4 lakh and 62 days DSO (highest).
- Payables: ₹1,976.0 lakh, but ₹1,025.6 lakh blocked (52% of total AP), limiting cash flow.
- Cash Conversion Cycle: CCC at 28 days; DSO (33) and DIO (62) are both elevated vs DPO (67).
Where to fix
- Export receivables: DSO at 62 days, ₹528.4 lakh tied up; 2.9x General Trade DSO (21 days).
- Blocked payables: ₹1,025.6 lakh stuck, restricting supplier payments and cash flexibility.
- Ageing AR: ₹471.4 lakh overdue (>90 days: ₹306.4 lakh, >180 days: ₹165.0 lakh), risking write-offs.
What to do
- Reduce Export DSO to 45 days — Owner: National Sales Manager · How: Tighten credit terms, direct follow-ups · Impact: ₹144.7 lakh released · By when: 60d
- Clear blocked payables — Owner: Treasury Lead · How: Resolve disputes, negotiate settlements · Impact: ₹1,025.6 lakh freed · By when: 30d
- Accelerate overdue AR collection (>90 days) — Owner: CFO · How: Deploy collection agency, offer early settlement discounts · Impact: ₹471.4 lakh recovered · By when: 60d
Auto-generated 19 Jul 2026, 13:23 · grounded on live page data · gpt-4.1
⚡ Do this next — 5 actions
Opportunity
Release distributor overstock ›
Channel stock above norm across overstocked distributors · owner: Treasury
₹4.42 cr
Run agent →
Opportunity
Extend DPO to 75 days ›
DPO 67→75d frees payables (without hurting supply) · owner: Treasury
₹3.43 cr
Run agent →
Opportunity
Pull DSO to 30 days ›
DSO 33→30d releases trapped receivables · owner: Credit & Collections
₹1.84 cr
Run agent →
Alert
2 distributors overstocked ›
Rebalance primary orders to secondary run-rate; enforce stock norms.
2 distributors
Run agent →
Alert
₹165.0L receivables 60+ days ›
Prioritise collections on top overdue accounts; tighten export/MT terms.
₹165.0L
Run agent →
Cash Conversion Cycle
28 days
DSO receivables
33 d
DIO inventory
62 d
DPO payables
67 d
Trade receivables
₹2356.7 L
Payables (open)
₹1976.0 L
Distributor days-of-stock
28.1 d