Free tool · Clarity Creates Cashflow
Free Cash Flow Health Check for Business Owners
Enter a few monthly numbers in ₹ and see your cash surplus or deficit, cash cover, receivables pressure and a clear Healthy / Watch / Tight / Critical result — with the three things to fix first. No sign-up needed.
What is cash flow?
Cash flow is the movement of money in and out of your business — customer payments coming in; salaries, rent, suppliers, taxes and loan EMIs going out. Profit tells you whether the business earns more than it spends on paper. Cash flow tells you whether there is money in the bank to pay this week's bills.
Why profitable businesses still run short of cash
Many established manufacturers, traders and distributors show a healthy profit yet struggle to pay salaries on time. Common reasons: customers pay in 60–90 days while suppliers want payment in 30; stock builds up ahead of demand; growth needs more working capital; or loan repayments take a large share of collections.
That is why Coach Dhejo teaches Data Before Decisions™: look at your cash numbers regularly before deciding to expand, borrow or cut. Read more in Profit but No Cash? and working capital strategies.
How this is calculated
- Monthly surplus / deficit = collections − (operating payments + EMI + owner drawings).
- Cash cover = cash + bank balance ÷ total monthly outflows.
- Cash runway (only when there is a deficit) = cash + bank balance ÷ monthly deficit.
- Receivables days ≈ receivables ÷ monthly collections × 30.
- Critical: monthly deficit and less than 3 months of runway. Tight: monthly deficit, or cash covers less than 1 month of outflows.
- Watch: surplus, but any of — outflows above 90% of collections, cash cover under 3 months, EMI above 25% of collections, receivables above ~60 days, payables above cash, or stock above 3 months of operating payments.
- Healthy: none of the above.
These thresholds are simple rules of thumb for this tool, not industry benchmarks. Every business is different.
Frequently asked questions
What is a cash flow health check?
It is a quick look at whether the cash coming into your business each month covers the cash going out, and how much cushion you have if collections slow down. This tool uses a few numbers you already know to give a simple Healthy, Watch, Tight or Critical result.
Why can a profitable business still run short of cash?
Profit is recorded when you make a sale; cash arrives only when the customer pays. If debtors pay late, stock builds up, or loan repayments are large, a business can show profit on paper while the bank balance keeps falling.
What numbers do I need?
Monthly collections, monthly operating payments and today's cash and bank balance are required. Loan EMIs, owner drawings, receivables, payables and inventory are optional but make the result more useful. Rough figures from your bank statement or accountant are fine.
How are the results calculated?
Monthly surplus is collections minus operating payments, EMIs and drawings. The result also looks at months of cash cover, receivables compared with monthly collections, and the share of collections going to EMIs. The exact rules are listed under "How this is calculated" on this page.
Is my data saved?
No. The numbers you enter stay in your browser and are not stored or sent to us. Nothing is asked for before you see your result.
Is this financial advice?
No. It is an educational diagnostic based on simple rules of thumb. For decisions on loans, tax or restructuring, speak with your CA or financial adviser.