Tools/Net Working Capital and Sales Ratio Calculator
Net Working Capital and Sales Ratio Calculator
Compute your net working capital and check it against sales - the efficiency ratio lenders and CFOs both watch.
Working Capital Inputs
Net working capital
₹1.50 Cr
NWC-to-sales ratio
12.5%
Assessment
Efficient
10-25% of sales is typical for healthy SMEs
125+ lenders. Termsheet in 48h. Zero equity dilution.
Why NWC-to-sales matters
Net working capital (NWC) = current assets minus current liabilities. Dividing it by annual sales tells you how much working capital every rupee of revenue consumes - most healthy SMEs run at 10-25% of sales.
A rising ratio means growth is locking more cash in receivables and inventory - the classic reason profitable companies feel cash-poor. Financing the gap with a working capital line keeps growth funded without starving operations.
Explore Working Capital LoansWhat is the NWC-to-sales ratio?
The NWC-to-sales ratio expresses net working capital as a percentage of annual revenue. It normalises working capital across company sizes: ₹1 crore of NWC is lean for a ₹20 crore business but heavy for a ₹3 crore one.
Lenders use it to sanity-check working capital loan applications - a request far above your historical ratio needs a growth story to back it.
How to use this calculator
- 1
Enter current assets - receivables, inventory, and cash.
- 2
Enter current liabilities - payables and short-term dues.
- 3
Enter annual sales from your latest financials.
- 4
Read your net working capital, the NWC-to-sales ratio, and the efficiency assessment.
Reading your ratio
Negative NWC
Liabilities exceed current assets - either a supplier-funded model (fine for retail) or a liquidity red flag (dangerous elsewhere).
10-25% of sales
The efficient zone for most trading and services SMEs - enough buffer without idle capital.
Above 25%
Capital-heavy - cash is locked in slow receivables or excess inventory. Tightening the cycle releases real money.
Watch the trend
A ratio creeping up quarter over quarter means growth is consuming cash faster than it generates it - plan financing early.