PPavionExecutive Cockpit

Cash 360

The treasury cockpit — 13-week cash, EBITDA-to-FCF conversion, working-capital unlock, receivables, liquidity and covenant headroom.

Pavion · FY26 (modeled)
#4 SDM Top Systems Integrators (2025)
2,800 employees · 70+ US sites · 23 countries
Executive read· the answer, then the moves

Liquidity is sound at $132M (≈ 7 weeks cover), but $12.9M of working capital is trapped in receivables — pull DSO from 54d to 48d to self-fund the next deal rather than draw the $151M of covenant capacity.

5 of 5 headline metrics improving vs prior · still off target: Free Cash Flow $48M vs $55M, Cash Conversion Cycle 31d vs 25d, DSO (Days Sales Outstanding) 54d vs 48d

Do now — ranked by urgency
  1. 1
    Staples credit exposureAct now
    Why it matters

    Move to credit hold pending paydown; reforecast ARR net of likely churn.

    What's driving it
    • Overdue AR
    • Signal: Alert
    FYI

    Distress filings + overdue AR; churn risk High on $6.4M account.

  2. 2
    Covenant headroom 0.9× (lev 4.6× vs 5.5×)Act now
    Why it matters

    Sets deal capacity and refinancing risk.

    What's driving it
    • Q1 (act)
    • Signal: Threshold
    FYI
    • Net-debt/EBITDA 4.6× against a 5.5× ceiling.
    • Owner: CFO · Treasury
  3. 3
    Unlock $12.9M by pulling DSO to the 48d targetWatch
    Why it matters

    Every day of DSO above 48d ties up working capital; closing the gap releases ≈ $12.9M of one-time cash.

    What's driving it
    • DSO 54d vs 48d target
    • Overdue >60d = $19.1M of $116M AR
    FYI
    • Normalizing laggard brands to 50d DSO releases ≈ $8.5M
    • Owner: Treasury
  4. 4
    3 brands running DSO > 65 daysWatch
    Why it matters

    Targeted collections sprint on $0.9M; tighten milestone billing on ISC projects.

    What's driving it
    • DSO
    • Signal: Alert
    FYI

    ISC (67d), Signet (66d), Staples account (67d) lifting blended DSO.

💎 Value creation → exitStep 5 of 7 · cash conversion, leverage, covenantFinance 360Brand / M&A 360All journeys
🌐 Enterprise 360 modules· on Cash 360Browse all 31 views ▾
Liquidity
$132M
≈ 7 weeks cover
Free cash flow
$48M
41% EBITDA conversion
Cash conversion cycle
31d
DSO 54 + DIO 18 − DPO 41
Working-capital unlock
$12.9M
DSO 54→48d target
Exhibit 1

13-week direct cash flow forecast

Net weekly cash (bars) and ending cash (line) vs. $20M minimum. Forecast trough: $28.7M.

Above minimum
$34M
Opening cash
$244M
13-wk collections
$241M
13-wk disbursements
$37.1M
Closing cash
Exhibit 2

EBITDA → Free cash flow

$116M EBITDA converts to $48M FCF (41%).

Exhibit 3

Cash collected

Monthly, $M.

Cash conversion cycle

Working-capital days

DSO — receivables54d
DIO — inventory18d
DPO — payables (offset)(41d)
Cash conversion cycle31d
Where cash is trapped

Working-capital cash unlock

$8.5M

Normalizing laggard brands to 50-day DSO releases ~$8.5M one-time.

Integrated Security & Comms (ISC)67d
$1.9M
RFI Enterprises61d
$1.7M
AFA Protective Systems56d
$1.6M
Signet66d
$1.3M
ECD Systems60d
$1.0M
Firecom58d
$0.7M
DavEd Fire Systems54d
$0.2M
Collections

AR aging

Total AR $116M

Current days$54.5M
1-30 days$29M
31-60 days$13.5M
61-90 days$9.8M
90+ days$9.3M

Overdue (>60d) = $19.1M.

Exhibit 4

Collections priority

Highest DSO first.

AccountRevenueDSOCredit risk
Staples$6.4M67dHigh
Kaiser Permanente$12.9M63dMedium
American Petroleum Institute$4.1M59dMedium
Bloomberg$14.2M58dLow
Align Technology$7.2M55dMedium
IBM$9.7M52dMedium
UPS$11.3M49dLow
Exhibit 5

Supplier DPO

Working-capital lever.

SupplierSpendDPOOTIFRisk
Axis Communications$64M45d96%Low
Honeywell$58M42d93%Low
Motorola Solutions$41M38d90%Medium
Hanwha Vision$27M36d89%Medium
Milestone Systems$23M40d95%Low
Crestron$19M44d92%Low
Exhibit 6

Leverage runway vs. covenant

Headroom = firepower

Deal capacity

Net-debt capacity to 5.5x
$151M
≈ $15M acquirable EBITDA @ ~10x
Net Debt / EBITDA4.2x
DSCR1.8x
Covenant Headroom1.3x
Cash Collected vs Plan96.0%