Agency Cash Conversion Checklist
12 checkpoints for agency cash health. Score each metric against the thresholds — anything in the "Stress" column needs immediate attention.
Receivables
DSO / Debtor Days45–60 days>60 days
WIP Days (unbilled work)10–20 days>30 days
Write-offs as % of billings<3%>5%
Profitability
Gross Margin %45–60%<38%
Net Margin %8–18%<5%
Revenue per Employee$120–180K<$90K
Overhead & People
Payroll % Revenue35–50%>55%
Bench Ratio5–15%>25%
Regretted Attrition (annual)<12%>12%
Risk
Client Concentration (top client)<25%>40%
Platform Concentration<30%>50%
Opex % Revenue25–38%>42%
When this matters: DSO above 60 means your clients are using you as a bank. I have watched this trigger payroll stress within 30 days — not because revenue was wrong, but because collections were 14 days slower than the business could afford.
What to do next
If 3+ metrics are in the stress zone, you need more than a checklist — you need a commercial interpretation of your numbers. The Margin Note gives you that for free.
If you want to go deeper — a full cash conversion analysis with sector benchmarks, a 13-week cash model, and 5 sequenced recommendations — the Interpretation Memo ($149) is the next step.
Want this applied to YOUR numbers?
Get a free Margin Note — one page of commercial judgment, benchmarked against your sector.
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