read-working-capital

name	read-working-capital
description	Read the cash conversion cycle (DSO + DIO − DPO) and locate trapped or surrendered cash. Reach for this on a cash question.

Skill: Read working capital

Profit on accrual can mask a cash crunch — state the basis (§3 #6).

Step 1 — State the basis

Accrual vs cash before any figure (§3 #6).

Step 2 — Compute DSO/DPO/DIO

Days sales/payable/inventory outstanding.

Step 3 — Compute the cycle

DSO + DIO − DPO via acctgops_calc.py working-capital (§3 #3 #4).

Step 4 — Name the lever

Cash trapped in AR (collections) or surrendered in AP timing (§3 #3 #4).

Output

A cash-conversion read with the basis stated and the cash lever named. Traverse Tree 2 in the decision-trees file.