Composite / composite / Immediate
Revenue is growing but DSO is deteriorating, the company is effectively financing its own clients' cash cycles.
Collections Deterioration (S4) + revenue growth > [redacted]% YoY
Growing revenue that sits in AR for [redacted]+ days is not the same as growing revenue in your bank account. The business is borrowing from its own future cash to fund current clients.
A consulting firm signs three new clients in Q[redacted] each on Net [redacted] terms. Revenue jumps [redacted]%, but AR jumps [redacted]%. Cash in the bank is flat or declining. The P&L looks great. The bank statement tells the real story.
Exact thresholds, formulas, and severity bands are omitted from this public view. The full methodology, with every figure, is available in the authenticated app.
[redacted] The top client ([redacted] outstanding on [redacted] terms) is the primary driver.
The exact thresholds, the formula, and your own figures are in the authenticated app. See it against a real, simulated dataset for Integra Executive Services, our public demo company, or connect your own QuickBooks Online account.