Working Capital Requirement

How much cash does your operating cycle permanently tie up?

Annual revenue

AED

Days Sales Outstanding (DSO)

days

Average days from invoice to customer payment

Days Inventory Outstanding (DIO)

days

Average days stock is held before sale — enter 0 for service businesses

Days Payable Outstanding (DPO)

days

Average days you take to pay suppliers

Working capital required

AED 986,301

Cash conversion cycle: 60 days

Cash conversion cycle of 60 days is manageable for most UAE SMEs. Working capital requirement is 16.4% of revenue.

Lever: reduce DSO by 10 days → saves AED 164,384 in required capital
Lever: extend DPO by 10 days → saves AED 164,384 in required capital

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