Working Capital Calculator

How the formulas work

Working Capital = Receivables + Inventory − Payables. The Cash Conversion Cycle adds the timing view: CCC = DSO (Days Sales Outstanding) + DIO (Days Inventory Outstanding) − DPO (Days Payables Outstanding). A positive CCC means cash is locked up; negative CCC (think Flipkart marketplace, BigBasket model) means suppliers fund your inventory.

Worked example

A Surat textile trader doing ₹6 crore annual turnover has DSO of 75 days (large buyers take time to pay), DIO 60 days (fabric stock), DPO 40 days (yarn suppliers). CCC = 75 + 60 − 40 = 95 days. Daily revenue ≈ ₹1.64 L, so working capital tied up ≈ ₹1.56 cr. With Section 43B(h) forcing MSME payables within 45 days from FY 2024-25, DPO drops to 40 → 30, lifting CCC to 105 days and the cash gap to ~₹1.72 cr — usually plugged by a CC limit or invoice discounting at 9–11%.

When to use this

• Preparing a CC / OD limit application to a bank or NBFC
• Budgeting for a festive-season inventory build-up
• Negotiating supplier credit terms — adding 15 days DPO saves real cash
• Spotting receivables creep that signals customer payment issues

Pair with the loan eligibility calculator for funding sizing, or the GST invoice generator to accelerate billing — the simplest lever for reducing DSO.