Working Capital Calculator
Capital needed to operate the business
Financial Data
Results
💰 Required Working Capital
$0.00
📊 Cash Conversion Cycle (days)
0
⏱️ Capital Turnover
0x
💰 Daily Requirement
$0
📈 Inventory Turnover
0x
Cycle Analysis
📊 What is Working Capital?
Working capital is the amount needed to finance business operations, covering the period between supplier payments and customer receipts.
📐 Working Capital Formula
Cash Conversion Cycle = Inventory Days + Receivable Days - Payable DaysWorking Capital = (COGS / 30) × Cash Conversion Cycle
📋 Interpreting Results
- Short Cycle (0-30 days): Good, little capital tied up
- Medium Cycle (30-60 days): Caution, plan cash flow
- Long Cycle (>60 days): High tied-up capital, risky
💡 How to Reduce Working Capital Requirement
- Reduce inventory holding period (lean inventory)
- Negotiate longer payment terms with suppliers
- Reduce receivable period (discounts for early payment)
- Implement Just-in-Time system
- Use factoring to accelerate receivables