Quick Wins, Everyday Wins, and Long-Term Value – A CFO’s Guide to Cash, Not Just Profits
Scott Russell
Chief Financial Officer
As a CFO, I hear plenty of valid arguments from other departments justifying their numbers. But the truth is it’s not just numbers, it’s about cash. Paper profits don’t pay wages.
Cash is the lifeblood of every business. And yet working capital can be the silent drain. If receivables increase (you’re making sales without receiving cash), inventory grows (your cash is stuck on shelves), or payables shrink (you’re paying suppliers too fast). Your business shows growth but you’re still financially fragile.
Businesses constantly seek more free cash flow, to reinvest, reduce debt, or pay dividends. That’s where Divi comes in.
Does This Sound Familiar?
- Procurement keeps ordering stock based on “gut feel” or “urgent stock outs” while you scramble to write cheques.
- Production runs at full steam, inventory keeps climbing, and your Inventory Days metric goes through the roof.
- You cross your fingers, hoping sales will clear the stock before the cycle repeats
They say the definition of insanity is doing the same thing and expecting different results.
This is where Divi flexes its financial muscles, unlocking cash and optimising outcomes through intelligent inventory and cash management.
Divi’s agentic algorithms continuously learn your business, generating demand forecasts down to individual SKU level. It identifies optimal inventory levels, when to buy based on supplier constraints, and when stock is needed for production or delivery.
1. The Quick Win
Inventory optimisation, that is, reducing stock without hurting sales, is the quick win. Divi unlocks cash, cutting procurement costs and inventory levels by 10–20% within the first 1–2 months.
Let’s run the numbers: You have average inventory $10M with a net profit margin of 10% and cost of capital of 8%
If Divi reduces inventory by 10%, from $10M to $9M you have unlocked $1M cash plus saved $80,000 of annual holding costs on that $1M.
To generate the same $1M cash from sales alone, you’d need an extra $10M in revenue.
2. The Everyday Wins
Production & labour management
In manufacturing, time is the only non-renewable resource. Divi helps you operate at full utilisation by ensuring all inputs and appropriately skilled labour are ready for each production run. Minimal downtime = maximum gross margin potential.
Cash management positioning
Divi knows your finished goods and demand forecasts. It identifies and prioritises which customers to sell to and when, to maximise profit, accelerate stock-to-cash conversion, and apply pricing adjustments to clear excess inventory.
Fast, accurate financial tools
Divi’s dynamic scenario modelling (from sale price to unit volumes to gross margin, right down to SKU level) enables real-time scenario analysis.
And let’s be honest, every CFO dreads producing monthly board packs. Gathering data from multiple sources, building charts, adding commentary. It’s a time sink. Divi does that for you. Set the parameters, do a final read-through, and submit.
3. Generating Long-Term Value
The long game is maximising business valuation, whether measured by PE multiple, DCF, or revenue multiple. Divi helps you achieve optimal outcomes and reach your potential. Investors look for businesses that earn, collect, and stay financially strong, all at the same time.
Let Divi help you play the game on your terms.