PRACTICAL FINANCE · ISLAM ALI HASSANIN
13-week liquidity scenario lab
See the cash gap before it becomes a deadline.
Explore the decision
All amounts use one consistent currency of your choice. Example data only. Inputs stay in this page; nothing is sent to a calculation service. Export your scenario before leaving—unsaved edits are lost on reload or language change.
Edit assumptions and data
View full results and calculations
The worked case and decision context
The question
When does forecast cash breach the minimum buffer, and how large is the gap?
Why it matters
Timing matters as much as totals. Collection delays can create a cash gap even when the full-period plan appears adequate.
The decision
Validate the first breach with treasury, then assess collections, payment timing and committed funding without assuming new financing.
Worked example
Opening 200,000, weekly receipts 100,000 and payments 110,000 leave 70,000 after 13 weeks. A10%receipt reduction and one-week delay produce a first buffer breach inweek 4, ending cash−150,000 and a 200,000 gap against a 50,000 buffer.90,000 of receipts moves beyond the horizon.
Method and assumptions
Weekly closing=opening+receipts−payments. Stress receipts are reduced by the selected percentage and shifted by whole weeks; payments are unchanged. No prior-horizon catch-up receipts or automatic funding is assumed. The maximum buffer gap includes the opening position.
What this model does not establish
One currency and unrestricted cash; use explicit receipts/payments including debt, tax and capex as applicable. Not a solvency opinion or covenant model. The DSO estimate equals annual credit sales÷365×days reduced; it is a separate steady-state sensitivity, not additional forecast cash. Do not add it to receipts without validating timing and avoiding double counting.
Turn the result into an action
- Reconcile unrestricted opening cash to bank balances.
- Build receipts from collection evidence and payments from due dates.
- Agree the minimum buffer and downside assumptions with treasury.
- Review forecast-to-actual differences weekly and roll the horizon.
Review checklist
Keep your work
The working paper is an HTML file containing current inputs, results, assumptions, sources and your action notes. Open it offline and print or save as PDF from your browser. JSON restores the numeric scenario; it does not include action notes. Neither file is an Excel workbook.
Sources and editorial record
Source pages accessed 18 September 2026. Research informs topic selection; formulas, example data and decision rules are original to Practical Finance. Source organisations have not endorsed this resource. Arithmetic and input-edge tests completed; no independent external technical review.