Working capital improvement: Baseline and evidence diagnostic

Working capital baseline and evidence diagnostic for strategy, finance and transformation leads. It covers DSO, DIO, DPO, cash conversion cycle and net working capital as a share of sales, normalisation for factoring, supplier finance and write-offs, and an evidence scoring scale that sorts levers into committed, pipeline and excluded. It includes a diagnostic questionnaire, an evidence inventory and a synthetic worked example.

Asset IDSTX-A0111

CategoryDiagnostic Templates

TierRead and Download

Prepared byStratenity Advisory Team

Executive summary

A finance-led diagnostic that turns raw receivables, inventory and payables data into an approved baseline and a graded list of levers, so that only evidenced, operational cash goes into the working capital business case.

What is inside

The 13 sections

Guidance on when the diagnostic applies and when it does not, an inputs table with an evidence hierarchy, metric definitions and replaceable assumptions, and a step-by-step method with a scoring scale for evidence quality. It also sets business case rules that keep cash, non-cash and financing effects apart, and provides execution, governance and measurement tables with owners and gates. Practice material covers a synthetic case, a failure case and an exercise. Copyable tools include the questionnaire, evidence inventory, normalisation and sizing worksheets, a clinic challenge log and a review record.

Purpose and decision
Context and applicability
Inputs and evidence
Definitions and assumptions
Method and analytical logic
Current-state assessment
Options and business case
Recommended design
Execution and activation
Governance and risk
Measurement and benefits
Worked example and practice
Working tools and references

How to use it

How to use this diagnostic

Begin by agreeing the perimeter with the sponsor and requesting the ledger extracts the asset lists. Reconcile and normalise the data before showing any metric to leadership. Then work through the questionnaire with each lever owner, score the evidence, and bring the results to a peer evidence clinic to challenge gaps. Take only well-evidenced levers into the business case, attach owners and dates to any conditions, track the rest as a pipeline, and keep measuring after approval.

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Stratenity Advisory Team. (2026). Working capital improvement: Baseline and evidence diagnostic. Stratenity Library. https://www.stratenity.com/resources/library/diagnostic-templates/working-capital-improvement-baseline-and-evidence-diagnostic

Stratenity Advisory Team. "Working capital improvement: Baseline and evidence diagnostic." Stratenity Library, 2026, www.stratenity.com/resources/library/diagnostic-templates/working-capital-improvement-baseline-and-evidence-diagnostic.

Stratenity Advisory Team. "Working capital improvement: Baseline and evidence diagnostic." Stratenity Library, 2026. https://www.stratenity.com/resources/library/diagnostic-templates/working-capital-improvement-baseline-and-evidence-diagnostic.

Stratenity Advisory Team (2026) Working capital improvement: Baseline and evidence diagnostic. Stratenity Library. Available at: https://www.stratenity.com/resources/library/diagnostic-templates/working-capital-improvement-baseline-and-evidence-diagnostic (Accessed: the date of access).

@misc{stratenity_stxa0111, author = {{Stratenity Advisory Team}}, title = {Working capital improvement: Baseline and evidence diagnostic}, year = {2026}, publisher = {Stratenity Library}, howpublished = {\url{https://www.stratenity.com/resources/library/diagnostic-templates/working-capital-improvement-baseline-and-evidence-diagnostic}}, note = {Asset ID STX-A0111} }

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Working capital improvement: Baseline and evidence diagnostic

The 13 sections

This is a taste. The full library goes deeper.

Stratenity is the AI Operating System for Strategic Execution™.

Stratenity is the AI Operating System for Strategic Execution^™.