Revenue and Margins
1. Enter the Annual Revenue - revenue for the year
2. Enter the Gross Margin % - the gross margin percentage is the ratio of the gross margin to the revenue of the business:
Gross margin % = (Revenue – Cost of sales) / Revenue
3. Enter the Expenses % - operation expenses + finance cost + income tax expenses. The cost of sales and depreciation related expenses should be excluded from the calculation.
Expenses % = (Operating expenses + Finance costs + Income tax expenses) / Revenue
4. Enter the Accounts Receivable Days - the average number of days credit is given by the business to customers
5. Enter the Inventory Days - the number of days cost of sales held as inventory by the business
6. Enter the Accounts Payable Days - the average number of days credit given to the business by trade suppliers.
7. Enter the Other Liabilities Days - the average number of days credit given to the business in respect of expenses (excluding the cost of sales and depreciation related expenses).
Estimation of Your Business Working Capital Needs
The calculator estimates the cash required to fund working capital analysed by accounts receivable, inventory, accounts payable, and other liabilities.
Finally, the calculator shows the working capital needs as a percentage of the revenue of the business to allow quick estimates to be made for varying amounts of revenue
Effective Finance Solutions to Help Your Business Growth
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