Working Capital Executive Summary | Period: Jan 2025
Accounts receivables
19,093,911
Previous19,099,455
MoM Chg.+0%
vs Budget+2%
Accounts payables
20,531,324
Previous29,844,398
MoM Chg.-31%
vs Budget+3%
Inventory
10,697,844
Previous14,162,075
MoM Chg.-24%
vs Budget+4%
Working Capital
9,260,431
Previous3,417,132
MoM Chg.+171%
vs Budget+2%
Working Capital Panel
WC LM
3,417,132.073.42
AR Variation
(5,543.26)(0.01)
Inventory Variation
(3,464,231.20)(3.46)
AP Variation
(9,313,073.45)(9.31)
WC CM
9,260,431.069.26
3.42
WC LM
(0.01)
AR Variation
(3.46)
Inventory Variation
(9.31)
AP Variation
9.26
WC CM
Increase
Decrease
Total
| Metric | Current Month | Last Month | Var |
|---|---|---|---|
| DSO | 50.17 | 48.82 | +3% |
| DIO | 30.97 | 39.68 | -22% |
| DPO | 59.43 | 83.61 | -29% |
| Cash Conversion Cycle | 21.70 | 4.88 | +344% |
Executive Summary - AI Generated
Executive Summary: Working capital rose sharply to AED 9.26M, mostly due to increased DSO (back to 45.64) and higher DIO. DPO support was limited.
This return to high WC usage is not ideal at the start of the year. It pressures Q1 liquidity and calls for immediate reversal.
Recommendations:
Prioritize collection catch-up for January invoices.
Realign stock purchases with sales projections.
Freeze discretionary procurement until metrics improve.