Free cash planning tool
Working Capital Requirement Calculator
Estimate the cash tied up in receivables and inventory, subtract supplier financing, then add the liquidity buffer needed to keep normal operations moving.
Simple calculator
Updates live
Enter the operating cycle
Sales & cost base
Cash conversion cycle
Liquidity buffer
Operating requirement
Receivables + inventory − payables = net operating working capital. The calculator then adds your selected operating cash buffer.
Advanced calculator
Growth + stress model
Model operating liquidity in more detail
Current operating scale
Operating cycle
Other operating current assets & liabilities
Liquidity policy
Current balance-sheet position
Advanced requirement
Operating working capital includes receivables, inventory and other operating current assets less payables and other operating current liabilities. Liquidity reserves are shown separately.
Working-capital bridge
Current operating scale
Where the cash is tied up
| Component | Driver | Calculated amount | Cash effect |
|---|
Cycle sensitivity
10-day operating improvements
Cash impact of changing operating days
| Change | New cycle | Working capital released / required | Revised total requirement | Signal |
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Growth sensitivity
Operating days held constant
Working capital needed at different growth rates
| Revenue growth | Projected revenue | Operating WC | Total liquidity requirement | Incremental funding vs current |
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Reading the result
Profitable growth can still consume cash.
A business may record revenue and profit before the cash arrives. Accounts receivable and inventory absorb cash, while supplier payment terms provide financing. The difference is the operating working capital that must be funded somehow.
Growth often increases the requirement because more sales create larger receivables and, for inventory-based businesses, more stock. Faster collections, lower inventory days and longer supplier terms can reduce the amount of cash tied up in normal operations.
Net operating working capitalOperating current assets minus operating current liabilities, excluding financing balances.
Cash conversion cycleReceivable days plus inventory days minus payable days.
Liquidity requirementOperating working capital plus the cash reserves you want available for normal operations.