Trapped Cash Estimator

FreeAbout three minutesCash and working capital
What it does

Estimates the dollars sitting idle in your debtors, stock and supplier terms compared with efficient norms for your industry.

How it helps

There is often more cash inside the business than owners realise, parked rather than lost. This puts a figure on it, so you can see what working capital you could free up without touching sales or quality.

How this benchmark is calculated

This benchmark is indicative only and reflects ProfitPulse's internal commercial ranges rather than an external survey. It is a directional read, not a formal industry survey and not financial advice. The range shifts with your broad industry category, your size and your commercial complexity.

In about three minutes, free, you will see a dollar estimate of cash releasable from each working capital pool compared with the norms for their industry.

Trapped Cash Estimator

Answer a few quick questions to see where you stand.

How the trapped cash estimate is calculated

The formula

Releasable cash = the amount your debtors, stock and supplier terms sit above an efficient level for your revenue.

Worked example

On 2,000,000 dollars revenue, debtors of 300,000 dollars sit roughly 135,000 dollars above an efficient 30 day level, and that is cash you could release without touching sales.

How to read your result

Little parked means a well run cash engine. Worth a closer look means a useful sum is sitting in working capital. Significant opportunity means a serious amount is trapped, and releasing even half changes the funding picture.

What each figure means

  • Revenue for the last 12 months: Your total sales for the period, before any costs are taken out.
  • Accounts receivable balance today: Unpaid customer invoices currently owing to you.
  • Inventory or work in progress balance today: The value of stock on hand, or work done but not yet invoiced.
  • Accounts payable balance today: Unpaid supplier invoices you currently owe.

Common questions

Is trapped cash the same as a loss?

No. It is your money parked in debtors, stock or early supplier payments, which you can release.

How much can I usually free up?

It varies, but releasing even part of it often changes the borrowing conversation entirely.

Will this hurt customers or quality?

No. The releases come from timing and terms, not from cutting sales or service.

How ProfitPulse can help

If cash is parked in working capital, our fractional CFO support releases it pool by pool and puts controls in place so it does not build back up.