FP&A

Working Capital Forecast Template

Forecast changes in working capital (receivables, inventory, payables). Plan for cash needs or surpluses driven by operating growth.

How to use this template

1

Build working capital model

Create schedule showing projected accounts receivable, inventory, and accounts payable for next 12 months based on revenue and expense projections.

2

Project receivables

Calculate projected AR based on sales growth and days sales outstanding. Model seasonal impacts on cash collection timing.

3

Project inventory

Calculate projected inventory based on cost of goods sold and inventory turnover assumptions. Model lead time impacts.

4

Project payables

Calculate projected AP based on COGS and operating expense growth, using days payable outstanding assumptions.

5

Calculate cash impact

Calculate net working capital changes period-over-period. Project whether operating growth requires additional financing or generates free cash.

Why use this template

  • Projects cash needs driven by business growth
  • Identifies whether growth can be self-financed or requires external funding
  • Supports planning for credit facilities or capital raises
  • Enables management to optimize cash conversion cycle

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