CFO Dashboard
Actionable insights for working capital optimization.
Key Insights
High Overdue Receivables
50% of receivables are overdue. This poses a significant liquidity risk despite an improving DSO.
Strong Liquidity Position
The Current Ratio of 1.85 is above the industry average of 1.65, indicating a healthy safety margin.
Cash Conversion Cycle (CCC)
Time to convert investments to cash
52 days
Current Cycle
Days Sales Outstanding (DSO)42 days
Days Inventory Outstanding (DIO)45 days
Days Payable Outstanding (DPO)-35 days
Top Recommendations
1. Target Overdue Accounts
Focus collection efforts on the $370K overdue to immediately improve cash position.
2. Optimize Inventory
Reducing DIO from 45 to a target of 40 days could free up significant cash.
3. Negotiate Payment Terms
Explore extending DPO with key suppliers to further improve the cash conversion cycle.
Key Performance Indicators
Current Ratio
Healthy
1.85
Liquidity assessment
Days Sales Outstanding (DSO)
Healthy
42 days
Avg. collection period
Days Payable Outstanding (DPO)
Healthy
35 days
Avg. payment period
Days Inventory Outstanding (DIO)
Healthy
45 days
Avg. inventory holding period
Analytical Note
Interpreting DSO and Overdue Accounts
An improving Days Sales Outstanding (DSO) alongside a high overdue balance can occur. This often indicates that while large, recent invoices are being paid quickly (lowering the average), a significant volume of smaller or older invoices remain unpaid.
Recommendation: Ask the AI to "analyze receivables by customer segment" to identify where the collection issues are concentrated.