Ideas for Better Financial, Data & Technology Decisions
Almugabu Insights explores financial modelling, forecasting, business analysis, data, and practical technology through concise articles, guides, and visual explanations.
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Finance and FP&A, analysis and investing, and data and technology.
Why Profitable Growth Can Drain Cash: Understanding the Working Capital Paradox
Revenue growth can increase the cash tied up in receivables and inventory before that cash is collected — meaning a profitable business can still experience liquidity pressure.
- Revenue growth
- Working capital
- Cash flow
- DSO
- DIO
- DPO
Cash Conversion Cycle
More Insights
The Three Levers of Cash Flow: DSO, DIO & DPO
How receivables, inventory, and payables influence working capital and cash flow.
How to Evaluate the Financial Health of a Company: A Practical Framework
A structured approach to reviewing profitability, liquidity, leverage, efficiency, and earnings quality.
DuPont Analysis: Understanding the Drivers of ROE
How profit margin, asset turnover, and financial leverage combine to influence return on equity.
Altman Z-Score: A Practical Guide to Financial Distress Risk
An introduction to how the Altman Z-Score combines financial ratios to assess potential financial distress.
Profit vs Cash: Understanding Earnings Quality
Why accounting profit and operating cash flow can tell different stories about business performance.
Working Capital Forecasting with DSO, DIO & DPO
How top-down working-capital drivers can support forecasting of receivables, inventory, payables, and cash requirements.
Visual Guides
Some Almugabu Insights use diagrams and visual frameworks to make financial and analytical concepts easier to understand.
Financial Health Framework
A visual way of organizing profitability, liquidity, leverage, and efficiency when reviewing a company.
Working Capital Levers
A diagram of how receivables, inventory, and payables move together to affect cash.
Investment Risk Framework
A structured way of separating business risk, financial risk, and valuation risk in an analysis.
Insight Philosophy
Practical
Focus on concepts that can be applied to real decisions.
Clear
Explain financial and technical ideas without unnecessary complexity.
Evidence-Based
Separate assumptions, analysis, and conclusions clearly.