DSO Scenario Analysis
Quantify liquidity unlock and capital efficiency gains from receivables optimization. Designed for treasury, capital allocation, and board-level decisions.
WACC 8%
Strategic Mode
Days
%
Current Receivables
Actual
1,250M
Current DSO: 62.5
Pro-Forma DSO
Goal
58.5Days
↓ 4.0 Days from Baseline
Liquidity Unlock
FCF Impact
+80.0M
Projected Cash Release
Interest Savings
P&L Benefit
6.40M
Annualized at 8.0% WACC
DSO vs. Sales Efficiency
Identify High-Risk EntitiesScenario Cash Waterfall
Regional ContributionRegional Subsidiary Breakdown
| Subsidiary | Sales (TTM) | Current AR | Current DSO | Weightage | Target DSO | New AR Balance | Cash Impact |
|---|---|---|---|---|---|---|---|
| US - North America | $120.0M | $18.5M | 56 | 45% | 51 | $16.8M | +$1.70M |
| Germany - DACH | $85.0M | $15.2M | 65 | 30% | 60 | $14.0M | +$1.20M |
| United Kingdom | $42.0M | $4.8M | 42 | 10% | 37 | $4.2M | +$0.60M |
| Singapore - APAC | $28.5M | $3.1M | 40 | 10% | 35 | $2.7M | +$0.40M |
| Brazil - LATAM | $12.0M | $1.25M | 38 | 5% | 33 | $1.08M | +$0.17M |
| TOTAL GROUP | $287.5M | $42.85M | 54.4 Avg | 100% | 49.4 Avg | $38.78M | +$4.07M |
Executive Insights
Reducing Global DSO by 5 days will unlock $4.07M in liquidity. At a Group WACC of 8.5%, this equates to an annualized interest saving of $345.9k. The highest opportunity lies in the Germany - DACH region due to its high DSO relative to sales volume.