Working Capital - Excel Model Template

This is WSO's free Excel template for a Working Capital Schedule

by Wall Street Oasis
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with Patrick Curtis
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Description
This is Wall Street Oasis’ free Working Capital Excel model. You can download this plug-and-play template to produce your own working capital schedule for a company (you can enter your own numbers or formulas to auto-populate output numbers). The template also includes tabs for other components of a financial model.

The working capital of a company is the capital that they use in their daily trading operations. To calculate working capital, subtract the company’s non-debt current liabilities (e.g. accounts payable) from their current assets (e.g. accounts receivable, cash, stock inventory etc.) :

[ Working capital = current assets – current liabilities ]

Working capital is important to businesses because changes in working capital can significantly affect cash from operations, free cash flow and therefore the value of the business. If a company’s accounts receivable increases, it means the business hasn’t collected payment on some of its revenue, and so cash flow will decrease. On the other hand, if a business’s account payable increases, then the company has unpaid expenses and so cash flow will increase. The net effect of changes in current assets and current liabilities makes up the impact of working capital in financial modelling.

If you have any questions, feel free to start a discussion below or send a private message via the Wall Street Oasis Eloquens channel.

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1 Working Capital Schedule Excel model