How a Hot Sauce Maker Used the Cash Conversion Cycle to Boost Cash Flow

Cash Flow Conversations with Fexingo: Working Capital, Receivables, and Small Business Finance · Jul 29, 2026 · 6m · transcript

In this episode, Lucas and Luna explore the cash conversion cycle (CCC) through the story of a hot sauce maker in Austin. Facing a cash crunch despite growing sales, the owner discovered that her cash was tied up for over 100 days—too much inventory, slow-paying customers, and quick payments to suppliers. By calculating days inventory outstanding (DIO), days sales outstanding (DSO), and days payable outstanding (DPO), she pinpointed the problem. She reduced inventory by 20%, offered early payment discounts to customers, and negotiated longer terms with a key supplier. The result: the CCC…