Industrial Equipment, Machinery & Capital Goods worked example

Capital Goods Cash Cycle at 52% approval and collection follow-up allowance: a worked example

What does the result look like when approval and collection follow-up allowance reaches 52%? The full calculation is worked below with real intermediate numbers. Use it when planning deposit, progress, shipment, SAT, retainage, and final payment milestone workload.

The inputs for this scenario

  • Cash milestone packages to process: 22 packages (unchanged)
  • Cash package processing throughput: 2.2 packages / hr (unchanged)
  • Approval and collection follow-up allowance: 52 % (raised for this scenario; the documented default is 45)

Working through the calculation

  • Applying the documented formula (Base cash cycle workload = cash milestone packages รท cash package processing throughput) to the inputs above produces each figure below.
  • At this operating point the engine returns 15.2 hr for required capital goods cash cycle workload, the number this scenario is built around.
  • At this operating point the engine returns 10 hr for base cash cycle workload.
  • At this operating point the engine returns 52 % for approval and collection follow-up allowance.
  • At this operating point the engine returns 2.2 pieces / min for cash package processing throughput.

How this compares with the baseline

  • Against the tool's baseline example, where approval and collection follow-up allowance sits at 45% and the headline result is 14.5 hr, this scenario comes in 4.83% above the baseline at 15.2 hr.
  • A figure at this level is achievable when approval and collection follow-up allowance is genuinely sustained, not just peaked for a shift. It models processing labor-hours, not days-sales-outstanding or actual cash receipt timing; a package can be 'processed' in an hour yet still sit weeks awaiting customer approval, which the allowance only roughly captures.

Results at a glance

  • Required capital goods cash cycle workload: 15.2 hr (headline result)
  • Base cash cycle workload: 10 hr
  • Approval and collection follow-up allowance: 52 %
  • Cash package processing throughput: 2.2 pieces / min

Run it with your numbers

  • Every input above is editable in the live Capital Goods Cash Cycle calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.