---
name: read-working-capital
description: "Read the cash conversion cycle (DSO + DIO − DPO) and locate trapped or surrendered cash. Reach for this on a cash question."
---

# Skill: Read working capital

Profit on accrual can mask a cash crunch — state the basis (§3 #6).

## Step 1 — State the basis
Accrual vs cash before any figure (§3 #6).

## Step 2 — Compute DSO/DPO/DIO
Days sales/payable/inventory outstanding.

## Step 3 — Compute the cycle
DSO + DIO − DPO via `acctgops_calc.py working-capital` (§3 #3 #4).

## Step 4 — Name the lever
Cash trapped in AR (collections) or surrendered in AP timing (§3 #3 #4).

## Output
A cash-conversion read with the basis stated and the cash lever named. Traverse Tree 2 in the decision-trees file.