Understanding Your Business Cash Flow Doesn't Have to Be Complicated
Most business owners I've worked with know their revenue numbers. But when you ask about working capital? That's where things get fuzzy. And I get it — you're running a business, not studying balance sheets all day.
The truth is, healthy cash flow separates businesses that scale from those that struggle. You can be profitable on paper and still run into trouble if your working capital isn't moving the right way.
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What Working Capital Analysis Actually Means for Your Business
Here's what happens in a lot of businesses: sales are good, clients are happy, but somehow there's never quite enough cash on hand. Maybe you're extending credit terms to win contracts. Maybe inventory sits longer than you planned. Or suppliers want payment faster than your customers pay you.
That gap — between when money goes out and when it comes back in — that's your working capital cycle. And understanding it isn't about complex formulas. It's about seeing where your cash actually goes during normal operations.
What I've noticed after years of reviewing business finances is that most cash flow problems aren't about revenue. They're about timing. A business doing millions in sales can run tight on cash if the cycle isn't managed properly. Meanwhile, a smaller operation with tight working capital management might have more flexibility than you'd expect.
Three Areas That Shape Your Working Capital Position
Receivables Management
How quickly customers pay you matters more than most realize. A 30-day payment term sounds standard, but if customers routinely take 45 or 60 days, that changes everything. We help you see what's actually happening versus what should be happening.
Inventory Turnover
Money sitting in inventory is money that's not available for other needs. Some industries move product fast. Others hold stock longer by necessity. The key is knowing whether your turnover rate makes sense for your specific business model and market conditions.
Payables Strategy
When you pay suppliers affects your cash position significantly. There's a balance between maintaining good relationships and optimizing your payment timing. Getting this right requires understanding both your obligations and your leverage points.
These three elements work together as a system. Change one, and the others shift. That's why isolated fixes rarely solve working capital challenges long-term. You need to see the whole picture of how cash moves through your operations.
Real Businesses, Real Working Capital Challenges
The Growth Trap Nobody Warns You About
I worked with a wholesale business that was growing at 40% annually. Sounds great, right? Except they were constantly scrambling for cash. More sales meant more inventory upfront and longer receivables. Growth was actually straining their working capital.
We restructured their payment terms, renegotiated some supplier arrangements, and introduced better forecasting. Six months later, they were still growing fast — but with breathing room. That's what proper working capital analysis does. It lets you grow without the constant cash anxiety.
How We Approach Working Capital Analysis
Current State Assessment
First, we need to understand where you are right now. That means looking at your actual numbers — not just what the accounting software shows, but what's really happening with your cash cycle. We calculate your working capital metrics and compare them against industry benchmarks relevant to your sector.
Pattern Identification
Numbers tell stories if you know how to read them. We look for patterns in your receivables aging, inventory movement, and payment schedules. Often there are seasonal factors or customer-specific issues that only become visible when you analyze the data properly.
Scenario Modeling
What happens if you adjust payment terms? What if you reduce inventory levels? How does faster collection affect your position? We model different scenarios so you can see the potential impacts before making changes. This removes a lot of the guesswork from financial decisions.
Implementation Support
Analysis is valuable, but implementation is where results happen. We help you put the insights into action with practical steps that fit your business operations. And we're available as you make adjustments because working capital management is ongoing, not a one-time fix.
What Business Owners Say About Working With Us
Lisbeth Thorvaldsen
Manufacturing Operations Director
Before working with Norixaovexo, I understood our profit margins but our cash position was always tight. Turns out we were carrying too much inventory and our payment terms didn't match our actual collection patterns. The analysis showed us exactly where the pressure points were. We made some adjustments and within three months had better cash visibility than we'd had in years. Worth every conversation we had with them.
Ready to Get Clarity on Your Working Capital?
If cash flow feels unpredictable despite solid revenue, or if you're planning growth but worried about financing it, let's talk. We offer straightforward working capital analysis that gives you the visibility you need to make confident decisions.