Finance · Free tool
Working Capital Calculator
WC = Receivables + Inventory − Payables. CCC = Days you wait between paying suppliers and receiving from customers. Lower CCC means you don't need as much working capital tied up.
₹5,00,00,000
60 days
30 days
45 days
Working capital required
₹61,64,384
Receivables₹82,19,178
Inventory₹41,09,589
Payables (offset)−₹61,64,384
Cash conversion cycle45 days
FAQ
High WC — bad?
Yes — capital tied up in receivables / inventory could earn 10-15% elsewhere. High WC also means high CCC (cash conversion cycle) = liquidity risk.
How to reduce WC?
Faster invoicing + offering early-payment discount (cuts DSO). Just-in-time inventory (cuts DIO). Negotiate longer payment terms with suppliers (raises DPO). Each day saved = real cash.
Negative WC — possible?
Yes — supermarkets, e-commerce. Customer pays at billing, supplier paid 30-60 days later. Working capital is negative; suppliers fund the operation. Powerful, but risky if scaling fast.