Working Capital Calculator 2026
This working capital calculator computes net working capital (NWC), the cash conversion cycle (CCC) and key liquidity ratios for SMEs. Enter accounts receivable, inventory, accounts payable, annual revenue and COGS; the tool returns NWC, current ratio, quick ratio, days sales outstanding (DSO), days inventory (DIO), days payable (DPO) and CCC. Example: an SME with CHF 400,000 AR, CHF 300,000 inventory, CHF 250,000 AP on CHF 3M revenue and CHF 2M COGS has NWC of CHF 450,000, DSO 49d, DIO 55d, DPO 46d and CCC of 58 days — meaning CHF 477,000 is locked up in operations. Lowering CCC by 10 days frees CHF 82,000 cash. Last updated June 2026.
How to use this calculator
- 01Enter accounts receivable (money customers owe you).
- 02Enter inventory at cost.
- 03Enter accounts payable (money you owe suppliers).
- 04Enter annual revenue and COGS.
- 05Read NWC, current ratio, DSO, DIO, DPO and CCC.
- •NWC = Current Assets − Current Liabilities.
- •CCC = DSO + DIO − DPO — days cash is locked in operations.
- •Current ratio 1.5–2 is healthy; under 1 means liquidity crunch.
- •Reducing DSO by 10 days has the fastest cash impact.
- •Negative CCC (Amazon, McDonald's) means suppliers fund growth.
Frequently asked questions
What is working capital?
Working capital = current assets − current liabilities. It measures the cash available for day-to-day operations. Positive = healthy; negative = liquidity risk.
What is the cash conversion cycle?
CCC = DSO + DIO − DPO. It measures how many days cash is tied up between paying suppliers and collecting from customers. Lower is better.
How can I reduce my CCC?
Three levers: (1) invoice faster and chase AR weekly; (2) cut inventory with just-in-time ordering; (3) negotiate longer payment terms with suppliers (60 days instead of 30).
What current ratio is healthy?
1.5–2.0 is the sweet spot. Under 1 means you can't cover short-term debt; over 3 means you're holding too much cash that should be invested.
Is a negative CCC bad?
No — it's excellent. It means suppliers fund your growth (you collect before you pay). Common in marketplaces, fast food and supermarkets.
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