Working Capital Model (Excel XLSX)

BENEFITS OF THIS EXCEL DOCUMENT

1. Provides the necessary working capital to operate your business
2. Gives the net cash cycle on days
3. Provides an analysis of sensibility to see the changes on key indicators.

WORKING CAPITAL MANAGEMENT EXCEL DESCRIPTION

This product (Working Capital Model) is an Excel template (XLSX), which you can download immediately upon purchase.

The Working Capital Model is a tool can make you improve the managment of the assets and liabilities ins short term and reduce the cost of oportunity of the money and the rates of interest of expensive loans

¿Why is WORKING CAPITAL CALCULATION important to the company? Because it indicates the capacity for action in terms to be able to operate and carry out the complete cycle of its business (buy-produce-sell-collect-pay). The net cash cycle determines the time in days of sales required to finance the operation of your company.
The model will calculate two important key important index:
•  THE NET CASH CYCLE
•  THE NECESSARY WORKING CAPITAL
Also the model give you to make sensibility analysis to see how change the working capital when:
•  The TURNOVER INVENTORY increase or decrease.
•  The % of sales to credit increase or decrease.
•  The % of purchases to credit increase or decrease.
This analysis gives you the tool to establish an estrategy with clients and suppliers to negotiate better condition of sales and purchases.
Also the anlysis show you the rate of rotation of the inventory and the days takes to sale the whole inventory.

Source: Best Practices in Working Capital Management Excel: Working Capital Model Excel (XLSX) Spreadsheet, easyfinance