Growth and cash

Why revenue growth doesn't automatically fix cash flow.

A company can grow revenue and still create more cash pressure. The reason is timing: payroll, inventory, vendors and acquisition spend can require cash before customers pay.

Profit is not timing

The income statement can show growth while the bank account gets tighter. A sale recognized today may not turn into cash for weeks, while payroll and operating commitments happen on fixed schedules.

Growth can increase working-capital needs

Faster growth can require more inventory, more people, more marketing and larger vendor commitments. If those outflows occur before customer cash arrives, growth temporarily consumes cash.

Model the cash conversion cycle

Instead of asking only whether revenue is increasing, model collection timing, major payment dates and the operating costs required to support the next level of sales.

Planning question: if collections slow by 10% while payroll and operating commitments stay fixed, how many weeks of runway remain?

Calculate your starting point

Use the free Cash Runway Calculator for a directional answer, then build a weekly 13-week forecast if the result is sensitive or tight.