Case Study: How this Textile Manufacturer Increased Cash Available by $3,125,000 with a Simple Balance Sheet Optimization

Do YOU have $3 million of cash hiding in plain sight?

The vcfo team worked with a client in the manufacturing industry selling products to automobile paint and textile customers. We were looking for ways to increase their cash available.

By digging into their financials, we determined that they were carrying 90 days of finished goods inventory when their top competitors had 65 days of inventory on hand.

One day of inventory was worth $125,000 to this client. Driving their inventory to a more optimized level delivered a $3,125,000 increase in cash available. This amount was on their balance sheet the entire time, hiding in plain sight!

Consider having another set of eyes take a look at your operation to see what values might be hiding in plain sight.

To start the conversation, reach out to our offices here.