What is Working Capital in D2C?

Working capital is the difference between your current assets (like inventory and cash in marketplace wallets) and your current liabilities (like payments owed to vendors and designers).

Why do D2C brands often run out of cash despite being profitable?

This is usually due to a "Working Capital Gap". You have to pay for inventory and ads *today*, but your website sales or marketplace payouts might take 7-14 days to hit your bank account.

How can I improve my working capital cycle?

Negotiate longer payment terms with manufacturers, reduce your inventory days (order smaller batches more often), and encourage prepaid orders for faster settlement.

What are "Inventory Days"?

Inventory days is the average amount of time a product sits in your warehouse before being sold. The lower this number, the faster your cash "turns" and the less capital you need.

Working Capital Calculator | Free Working Capital Calculator Tool

Working Capital: The Growth Enabler

D2C brands often tie up 25-40% of revenue in working capital. Optimizing your cash conversion cycle frees capital for growth without external funding. This tool helps you identify and capture these opportunities.

Enter Your Financial Data

Industry Category

Monthly Revenue

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Monthly COGS

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Monthly Operating Expenses

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Gross Margin %

Current Inventory Value

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Raw Materials %

Work in Progress %

Finished Goods %

Accounts Receivable

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Accounts Payable

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Cash Balance

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COD Percentage

COD Collection Days

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Prepaid Collection Days

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Marketplace Sales %

Marketplace Payout Days

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Supplier Payment Days

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Early Payment Discount

Early Payment Days

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Expected Annual Growth

Cost of Capital

Credit Line Available

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Credit Line Utilized

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Slow Moving Inventory %

Peak Season Months

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Peak Season Growth

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Industry Category

Monthly Revenue

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Monthly COGS

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Monthly Operating Expenses

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Gross Margin %