Working Capital Calculator
Compute Net Working Capital, current and quick ratios, working capital turnover, operating cycle, cash conversion cycle, and Maximum Permissible Bank Finance (MPBF) under the Tandon Committee Method II. Enter balance sheet and profit-and-loss figures for the current year, and optionally the previous year for comparison.
Period and Display Settings
Adds a PY column for inputs and a variance column in the output tables.
Recommended when PY balances are entered. Ignored if PY is not provided.
Current Assets
Current Year
Previous Year
Current Liabilities
Current Year
Previous Year
Profit and Loss Figures
Current Year
Previous Year
If COGS is unavailable, you may enter Net Sales in its place; receivable days computation always uses Net Sales.
Bank Finance Assessment (Tandon Method II)
Long-term sources contribution to current assets. RBI / Tandon norm: 25%.
Leave blank to use CY Short-term Borrowings.
Working Capital Composition
Liquidity and Efficiency Ratios
Operating Cycle and Cash Conversion Cycle
Operating Cycle = Inventory Days + Receivable Days. Cash Conversion Cycle (CCC) = Operating Cycle – Payable Days. A shorter CCC indicates faster cash recovery from operations.
Working Capital Requirement and MPBF (Tandon Method II)
Tandon Method II: Working Capital Gap = Current Assets – Other Current Liabilities (excluding bank borrowings). Stipulated margin of 25% of Current Assets is to be brought from long-term sources. Maximum Permissible Bank Finance = (Current Assets x (1 – Margin%)) – Other Current Liabilities. Shortfall vs existing bank borrowings indicates over-financing; surplus indicates available headroom.