Edit Content

Financial.co.ke brings together education, market insight, product clarity and simple tools so you can manage your money, business and investments with confidence.

Subscribe to our weekly newsletter

Subscription Form
Working Capital Needs Estimator
💼 Working Capital Needs Estimator

Working Capital Needs Estimator

Estimate how much cash you need tied up in inventory, receivables and payables, using your days in each and annual sales.
1. Business scale & margin Trailing 12 months
Total sales for the year. Used to derive daily sales.
Gross margin % (Sales − COGS) ÷ Sales. Used to estimate COGS.
If unsure, assume most business-to-business sales and purchases are on credit (e.g. 70–100%).
2. Cash conversion assumptions (days) Average over the year
Average days stock sits before you sell it.
Average time customers take to pay (DSO).
Average time you take to pay suppliers (DPO).
3. Safety buffer Optional
Extra cushion for seasonality, delays, shocks (0–30% typical).
Please enter sensible values: amounts & days must be non-negative.
💡 Uses classic formulas: Inventory = COGS × Inv days ÷ 365, Receivables = Credit sales × Rec days ÷ 365, Payables = Credit purchases × Pay days ÷ 365.
Working Capital Summary
Waiting for numbers…
Net working capital needed: KES 0.00
Enter sales, margin & days to see required cash investment.
COGS (estimated)
KES 0.00
Daily sales
KES 0.00
Daily COGS
KES 0.00
Cash conversion cycle (CCC)
0 days
Inventory
KES 0.00
Receivables
KES 0.00
Payables (reduces need)
KES 0.00
Net working capital
KES 0.00
Net WC as % of sales
0.0% of sales
Buffer amount
KES 0.00
Total funding need (incl. buffer)
KES 0.00
Label / period
—
Composition of working capital
Relative size of inventory, receivables and payables No values yet
Inventory
Receivables
Payables (credit from suppliers)
—
This is a simplified estimator. It assumes steady sales through the year, constant days, and no VAT or tax effects. For detailed planning, build a monthly cashflow model and adjust for seasonality, growth and large one-off payments.

About

Financial.co.ke was founded to bridge the gap between everyday financial realities in Kenya and the complex world of markets, products and institutions – through education, context and practical tools.

Menu

Quick Links

Contact

+254 723 645 810

info@financial.co.ke

Vision Plaza, 1st floor, Room 2, Nairobi,Kenya

Copyright © 2025 All Right Reserved financial.co.ke