10/15/2026
Retail owners are some of the best real-time decision-makers in business.
But one seasonal mistake can create months of financial pressure:
Treating inventory only as a sales decision. Inventory is also a cash-flow decision.
Before the next major order or promotion, review three numbers:
1. Weeks of supply
How long will current and incoming inventory last at a realistic sales rate? More merchandise is not automatically more opportunity. It can also mean more cash sitting on shelves.
2. Margin after promotion
What remains after:
Discounts, freight, merchant fees, marketing, labor costs, and returns. A promotion can produce strong revenue and weak profit at the same time.
3. Expected cash-conversion date
When will the cash invested in the inventory realistically return to the bank?
U.S. retail and food-service sales increased 1.2% in August and were 6% higher than one year earlier (https://www.census.gov/retail/sales.html).
That suggests continued consumer activity. It does not guarantee that every retailer will buy the right merchandise, protect margin, or convert inventory into cash quickly enough.
Before placing the next order, know what the inventory must sell for, how quickly it must move, and when the cash needs to return.
For free resources and more information, please visit: https://duncanfinancialsolutions.com/