Do you know the exact amount of cash your business needs to operate smoothly? This figure, your Working Capital Requirement (WCR), is one of the most critical metrics for financial health. A high WCR means your cash is tied up in the operating cycle, leaving less flexibility to seize opportunities, invest in growth, or weather unexpected challenges.
Understanding how to assess, manage, and optimize your WCR is fundamental to building a resilient and successful business. This guide examines how to calculate your WCR and, crucially, the strategies you can implement to improve it.