Upping Your Business Game: Financial Literacy with Income|Outcome
Empower your financial decisions with Financial Literacy with Income|Outcome.
Hosted by the experts behind the globally recognized business simulation, this podcast demystifies complex financial concepts and translates them into practical insights for professionals, entrepreneurs, and curious minds alike. Whether you're navigating balance sheets, understanding cash flow, or exploring strategy through finance, each episode brings real-world examples and expert guidance to help you see the bigger business picture.
Visit www.income-outcome.com to learn more.
Upping Your Business Game: Financial Literacy with Income|Outcome
Ep. 06 Working Capital Cash Hiding in Plain Sight
Use Left/Right to seek, Home/End to jump to start or end. Hold shift to jump forward or backward.
Summary
Working capital isn’t just accounting jargon — it’s cash flow hiding in plain sight. In this episode, we explore how decisions around receivables, inventory, and payables affect how much working capital your business ties up every day — and how to get some of that cash back.
If you’ve listened to our episode on the Cash Conversion Cycle, you’ll recognize some familiar territory — but this time, we’re zeroing in on operational levers and real-world changes that can help you unlock cash without borrowing a dime.
What You’ll Learn:
- What working capital really means — and why it matters
- Three key areas to target: receivables, inventory, payables
- How small changes in operations can free up big cash
- The link between working capital and the Cash Conversion Cycle
- A simple framework (DSO, DIO, DPO) to help you measure and act
Key Metrics Explained:
📊 DSO (Days Sales Outstanding)
📊 DIO (Days Inventory Outstanding)
📊 DPO (Days Payables Outstanding)
🧮 Together they form your Cash Conversion Cycle:
DSO + DIO – DPO = Time your cash is tied up
Put It Into Action:
✅ Use our Working Capital Impact Calculator — enter your numbers and see how small changes affect your cash flow
✅ Start a working capital conversation within your team or region
✅ Challenge yourself: Who needs to be involved to test this?
👉 Link to Calculator or Resource Page
Looking Ahead:
Working capital and the cash conversion cycle are two sides of the same coin. This episode helps you see how everyday business choices ripple through your balance sheet — and how to use that insight to fuel smarter decisions.