Investment Banking Insights

Working Capital Equation (Receivables, Inventory and Payables)

July 1, 2025·11 min
Episode Description from the Publisher

Here's a refresher on the concept of working capital. But we don't just cover the concept today, we'll look at the formula and what it means. Specifically: Working capital cycle (aka the funding gap) = Receivable Days + Inventory Days - Payable DaysThanks so much for supporting the show! Contact: investmentbankinginsights@gmail.com

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