Finance & business
Working Capital & Cash Calculator
Measure the financing need created by operations and compare it with long-term funding.
Working capital and cash position
Enter operating-cycle balances and long-term funding to measure the financing requirement and net cash position.
Operating cycle
Financial structure
Ready to calculate
Enter your figures and calculate the working capital requirement, working capital and net cash.
Quick interpretation
WCR = inventory + operating receivables − operating liabilities. Working capital = stable resources − fixed assets. Net cash = working capital − WCR.
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How does this tool work?
Working capital requirement measures the amount tied up in the operating cycle. Working capital measures the long-term resources left after financing fixed assets. Their difference gives net cash.
The calculation first adds inventory and operating receivables, then subtracts operating liabilities to obtain the working capital requirement. Working capital is then calculated as stable long-term resources minus fixed assets. Finally, net cash equals working capital minus the requirement, while WCR days expresses that financing need relative to annual revenue on a 365-day basis.
How to use this tool
Enter operating balances
Add inventory, receivables and operating liabilities.
Enter long-term funding
Add stable resources, fixed assets and annual revenue.
Review the balance
Compare the operating requirement with working capital and net cash.
How are working capital requirement, working capital and net cash calculated?
These three indicators connect the operating cycle with the company’s long-term financing structure.
Working capital requirement (WCR)
WCR = inventory + operating receivables − operating liabilities
Operating receivables include trade and other operating receivables; operating liabilities include suppliers, tax/social and other operating liabilities.
Working capital
Working capital = stable resources − fixed assets
This measures the long-term funding left after financing fixed assets.
Net cash
Net cash = working capital − WCR
Working capital above WCR produces positive net cash; the reverse produces negative net cash.
WCR in days of revenue
WCR days = WCR ÷ annual revenue × 365
This ratio expresses the financing requirement relative to one year of activity.
- WCR
- Working capital requirement generated by the operating cycle.
- WC
- Working capital provided by stable long-term resources.
- Revenue
- Annual revenue used to express WCR in days.
Example: with 40,000 of inventory, 70,000 of operating receivables and 55,000 of operating liabilities, WCR is 55,000. If working capital is 80,000, net cash is 25,000. These indicators are analytical tools whose interpretation depends on sector, seasonality and payment terms.
Interpret the result
A positive WCR means the operating cycle needs financing. A negative WCR may instead provide financing, especially when customers pay before suppliers are settled.
Compare over time
Track WCR, working capital and net cash at comparable reporting dates. Revenue growth can mechanically increase WCR even when the business remains healthy.
Use cases
Prepare a cash-flow review
Measure how much financing the operating cycle absorbs before assessing short-term cash requirements.
Track working capital requirement
Compare WCR and its equivalent in days of revenue across several comparable reporting periods.
Assess financial balance
Compare working capital with WCR to understand what drives a positive or negative net cash position.
Tips and best practices
- Use balances from the same reporting date.
- A negative WCR can be normal in businesses that collect cash before paying suppliers.
- Track WCR over time and relative to revenue.
Frequently asked questions
What does a positive WCR mean?
Operating assets exceed operating liabilities, so the business needs financing to cover the difference.
How is net cash calculated?
Net cash equals working capital minus the working capital requirement.
What should I check before reusing the result?
Check the entered data, selected options, and output format to confirm that the generated result matches the requirements of your task.
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