How Inventory Turns Into Lost Cash

Cash Flow Conversations with Fexingo: Working Capital, Receivables, and Small Business Finance · Oct 27, 2026 · 9m · transcript

Small business owners often fixate on profit margins, but inventory is the silent cash killer. In this episode, we examine how a specific distribution company lost twelve percent of its annual revenue to obsolete stock and slow-moving goods. Lucas breaks down the difference between gross margin and cash conversion cycle, while Luna explores the psychological trap of ordering safety stock that never sells. We look at concrete metrics like days sales of inventory and how shifting from just-in-case to just-in-time models can free up millions in trapped capital without sacrificing customer…