Lara GuevaraSupply Chain expert (Product and Service)

Your Cash Is Trapped. Here's the recap.

15 Mar 2026 · 1 min

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1:03

Lara Guevara breaks down the cash conversion cycle, the number of days your money sits tied up between paying suppliers and getting paid by customers. Most DTC brands have a CCC of 60-120 days. Five common traps inflate it: excess safety stock, slow-moving SKUs, quick payment terms, wholesale orders without deposits, and ordering too early.

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March week 2 is done. You now know your cash conversion cycle. Here's the recap. The cash conversion cycle is how long your cash is trapped from the moment you pay your supplier to the moment your customer pays you. The formula is DIO plus DRO minus DPO. Most DTC brands are sitting between 60 and 120 days. That's 2 to 4 months where cash is untouchable. We covered the 5 hiding spots: safety stock, slow SKUs, quick payment terms, wholesale without deposit, and ordering too early. We covered benchmarks by business model so you know where you should be, and if you did the Saturday calculator, you now know your actual number. The gap between where you are and where you should be, that's the cash waiting to be freed. Coming up, week 3, Week 3 is the reorder timing system, the formulas that stop the bleeding. Week 4 is how one brand freed $120K using everything we've covered. Follow along, your cash flow will thank you.