75,000 is the example result. Read it using the units and relationship stated below.
Working Capital Requirement uses accounts receivable, inventory, accounts payable.
Keeping timing visible in cash decisions
For working capital requirement, the relationship is Result = [Accounts receivable] + [Inventory] − [Accounts payable]. The amount depends on the supplied accounts receivable, inventory, rather than a live market price or a value imported from another record. Profit does not state when money reaches the bank. Receivables, supplier payments and inventory can absorb cash while sales remain healthy. A cash comparison needs the payment window and outstanding balance, not only the invoice total.
What the model includes
Result = [Accounts receivable] + [Inventory] − [Accounts payable] Record whether amounts include tax, credit notes or disputed balances. Where a model converts annual flows into days, keep the balance and flow definitions consistent. Supplier terms and collection delays may move independently. Use the result to identify the next collection or payment question. A financing decision also needs contractual fees, settlement timing and repayment terms that may sit outside this model.
Example with the supplied inputs
Accounts receivable: 70000; Inventory: 50000; Accounts payable: 45000. Result: 75,000. The values are illustrative.
Compare one changed input
Accounts receivable changes from 70000 to 77000. The result becomes 82,000. All other inputs remain fixed.
Calculation rule
Result = [Accounts receivable] + [Inventory] − [Accounts payable]
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Accounts receivable | 70000 | Use the source quantity represented by accounts receivable. Keep the counted population fixed and avoid mixing a unit value with a period total. |
| Inventory | 50000 | Use the source quantity represented by inventory. Keep the counted population fixed and avoid mixing a unit value with a period total. |
| Accounts payable | 45000 | Use the source quantity represented by accounts payable. Keep the counted population fixed and avoid mixing a unit value with a period total. |
Output: 75,000 is the example result. Read it using the units and relationship stated below. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Accounts receivable, Inventory, Accounts payable. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Accounts receivable on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 75,000.
Change Accounts receivable from 70000 to 77000 while keeping every other value fixed. The result becomes 82,000. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.
Content updated: October 11, 2026