Operating Working Capital per $100
If you want to grow sales by $100, how much cash do you need upfront? Covers inventory and customer credit, minus what suppliers lend you. Uses Last Twelve Months sales as the base.
- How it's worked out
- (Operating Working Capital / LTM Sales) × 100
- Which way is better
- Lower is betterLower is better for cash.
Written by Mandy Walker, founder of Focus on Cash. Updated October 2026. This explanation comes from the glossary inside Focus on Cash, so it matches the words you see in the app.
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