MCG Advisory Services — Accounting Tools
Working Capital Health Check
Many profitable businesses run short of cash — not because they're losing money, but because cash is tied up in the wrong places. This tool diagnoses your cash conversion cycle and shows you where to unlock it.
How long to collect
The average number of days it takes your customers to pay you after invoicing. Lower is better — cash sits with your customers while you wait.
How long stock sits
The average number of days stock is held before it is sold. Cash is locked in inventory until goods move. Set to zero if you have no stock.
How long to pay
The average number of days you take to pay your suppliers. Higher creditor days mean your suppliers fund more of your working capital — a good thing.
Select your sector above to see how your working capital metrics compare. Benchmark cards below are for reference — click one to pre-fill typical industry figures.
Retail / FMCG
Retail benchmark
Debtor days: 15–30
Inventory days: 30–60
Creditor days: 30–45
CCC: 15–45 days
Manufacturing
Manufacturing benchmark
Debtor days: 45–60
Inventory days: 45–90
Creditor days: 30–60
CCC: 45–90 days
Construction
Construction benchmark
Debtor days: 60–90
Inventory days: 30–60
Creditor days: 45–75
CCC: 45–75 days
Professional services
Services benchmark
Debtor days: 30–45
Inventory days: 0
Creditor days: 30–45
CCC: 0–30 days
Wholesale / distribution
Wholesale benchmark
Debtor days: 30–50
Inventory days: 30–60
Creditor days: 30–45
CCC: 30–65 days
Food & beverage
Food & bev benchmark
Debtor days: 15–30
Inventory days: 7–21
Creditor days: 30–45
CCC: 0–15 days
Cash conversion cycle — how your cash flows
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Debtor days
Cash owed to you
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Inventory days
Cash in stock
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Creditor days
Supplier funding
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CCC
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Debtor days
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Inventory days
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Creditor days
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Working capital gap
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Working capital composition (R)