Days Working Capital


Days Working Capital
An accounting and finance term used to describe how many days it will take for a company to convert its working capital into revenue. The faster a company does this, the better.

To calculate days working capital, the following formula can be used:

Days Working Capital


Days working capital can be used in ratio and fundamental analysis.

When utilizing any ratio, it is important to consider how this company has evolved over time and how it compares to similar companies in the same industry. By comparing this ratio in a historical and relative basis, you will get a better understanding of how efficient a given company actually is.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Working capital — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • Days in inventory — Days in inventory(DII) is an efficiency ratio that measures the average number of days the company holds its inventory before selling it. The formula for DII is: where the average inventory is the average of inventory levels at the beginning and… …   Wikipedia

  • Days payable outstanding — (DPO) is an efficiency ratio that measures the average number of days a company takes to pay its suppliers. The formula for DPO is: where ending A/P is the accounts payable balance at the end of the accounting period being considered and COGS/day …   Wikipedia

  • Days sales outstanding — In accountancy, Days Sales Outstanding (also called Days Receivables) is a calculation used by a company to estimate their average collection period. A low number of days indicates that the company collects its outstanding receivables quickly.… …   Wikipedia

  • Capital, Volume I — is the first of three volumes in Karl Marx s monumental work, Das Kapital, and the only volume to be published during his lifetime. Originally published in 1867, Marx s aim in Capital, Volume I is to uncover and explain the laws specific to the… …   Wikipedia

  • Working time — Part of a series on Organized labour …   Wikipedia

  • Capital District — This article is about the Capital District in New York. For other uses of capital district, see capital districts and territories or capital region. Capital District Capital Region, Tech Valley …   Wikipedia

  • Capital accumulation — Most generally, the accumulation of capital refers simply to the gathering or amassment of objects of value; the increase in wealth; or the creation of wealth. Capital can be generally defined as assets invested with the expectation that their… …   Wikipedia

  • Capital punishment in Texas — The State of Texas Death Row seal, taken at the Polunsky Unit in West Livingston, Texas …   Wikipedia

  • days — noun the time during which someone s life continues (Freq. 1) the monarch s last days in his final years • Syn: ↑years • Hypernyms: ↑life * * * ˈdāz adverb …   Useful english dictionary


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.