Outline · coming soon
How much cash is tied up in your inventory?
A simple way to calculate days of inventory and the cash you'd free by carrying less, with the formula and a worked example.
Article outline. The full article is coming soon. [PLACEHOLDER — write the full draft]
Who this is for
- Owners who feel cash-tight despite growing sales
Outline
1. The idea: inventory is cash on a shelf
2. The formula
- Annual COGS = revenue × (1 − gross margin)
- Daily COGS = annual COGS ÷ 365
- Days of inventory = inventory at cost ÷ daily COGS
- Cash freed = days cut × daily COGS
3. A worked example (clearly hypothetical)
- Walk through the math with round, made-up numbers
4. Why the brand-level number hides the real story
- Fast movers vs. slow movers
- Why the SKU-by-SKU view matters
5. Ways to carry fewer days without stockouts
- Reorder points, smaller POs, clearing slow SKUs, supplier terms
6. Try it
- Link to the Trapped-Cash Calculator
Want this applied to your numbers?
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