Description
Return working-capital change and its cash-flow sign.
Corporate-finance calculations depend on currency, period, share class, contractual definitions and tax assumptions. A local balance or ownership factor reconciles supplied amounts without determining a complete valuation, financing outcome, enforceable right or applicable tax treatment.
Return working-capital change and its cash-flow sign.
When to use this tool
Use Free Cashflow Working Capital Term when checking one supplied corporate cash-flow, share, repayment or notice convention.
How to use the tool and how it works
- Enter currentWorkingCapital, priorWorkingCapital. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read increase, cashflowContribution. Use the output convention below.
Return working-capital change and its cash-flow sign. increase = currentWorkingCapital-priorWorkingCapital; cashflowContribution is its negative.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| currentWorkingCapital | Current Working Capital | Required. Finite number. |
| priorWorkingCapital | Prior Working Capital | Required. Finite number. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| increase | Increase | Required. Finite number. |
| cashflowContribution | Cashflow Contribution | Required. Finite number. |
{
"input": {
"currentWorkingCapital": 120,
"priorWorkingCapital": 100
},
"output": {
"increase": 20,
"cashflowContribution": -20
}
}Limitations and assumptions
- Both balances need a common definition/currency; this is one cash-flow component, not complete free cash flow.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use complete financial records, governing transaction documents and qualified financial, tax or legal advice for actual decisions and obligations.
References
Similar or alternative tools
- Unlevered Cashflow Tax Shield Term
Return operating after-tax and interest-shield terms.
- Interest Cover Headroom
Compare interest coverage with a supplied minimum.