# Working Capital

> Optimize working capital — receivables, payables, and inventory — to free cash without damaging operations or supplier relationships. Use when improving cash conversion cycle or diagnosing cash tied up in operations.

- Skill: `itsual/working-capital` (Agent Skill)
- Install (CLI): `npx skillmds@latest add itsual/working-capital`
- Raw SKILL.md: https://api.skillmd.com/api/skills/itsual/working-capital/raw
- Safety review: pending (external: skill-scanner PASS, skillspector PASS)
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Coding & Dev Tools
- Author: itsual (https://skillmd.com/u/itsual)
- Updated: 2026-09-22
- Page: https://skillmd.com/skills/itsual/working-capital

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# Working Capital

## Overview

Working capital is the cash embedded in day-to-day operations. Improving it is often faster and cheaper than raising external capital.

## When to Use

- Cash conversion cycle improvement
- AR aging and collections programs
- AP terms strategy
- Inventory optimization with operations

## Core Practices

- Measure DSO, DPO, and DIO (or equivalent)
- Segment AR by risk and size for collections focus
- Negotiate payment terms intentionally, not accidentally
- Align inventory policy with demand uncertainty
- Watch for improvements that merely shift pain to partners unsustainably

## Principles

- Sustainable working capital beats one-time squeezes
- Operations and finance must own this together
- Growth often worsens working capital before it helps
- Metrics without process change don’t free cash

## Verification

- [ ] CCC components are measured consistently
- [ ] Initiatives have operational owners
- [ ] Cash impact is tracked, not only ratio optics