Connect with us


How to Calculate the Required Working Capital for Your Business?



Cash flow in any business enterprise is critical. But getting tied up in stock capital can lead to lost opportunities and even less room for growth. Eventually, you’d need funds to meet your everyday operations. This is where working capital comes into the picture. It is an operational capital that meets your day-to-day financial obligations or commitments.

Working capital is required for a host of reasons like –

  • To pay off suppliers
  • Maintenance costs
  • Replenish stocks

How is it calculated?

In an accounting sense, it’s the difference between current assets and current liabilities. Currents assets involve inventories and receivables while current liabilities are like accounts payable or other forms of short-term liabilities.


  • Current assets: It’s what a company owns as both tangible and intangible assets. Current assets can include liquid marketable securities like stocks, mutual funds, bonds or ETFs. Current assets don’t include illiquid assets like real estate or hedge funds.
  • Current liabilities: It includes all debts and expenses that are payable in less than one business cycle. It includes operational costs like rent, supplies or interests on debts, etc.


How to fortify your business with Working Capital formula?

After calculating your business’s operational capital, you might find these scenarios –


  • The best case scenario is a circulating capital ratio of 1.2 and 2.0. It is a good sign as it indicates your business is running smoothly and that it has enough cash to meet your short-term obligations other than daily operations.
  • You might find that your current liabilities are equal to that of existing assets. It signifies you just have enough operating capital to cover your immediate obligations.
  • Worst case scenario, you might find out that you’re running a negative circulating capital and you’re falling short of meeting your obligations.


What determines this circulating capital requirement?

Mainly 3 factors calculate your business working capital’s requirements


  • Receivables – These are debts owed to a firm by its beneficiaries for products or services that they’ve used but not paid for.
  • Inventories – These are raw materials needed to manufacture goods.
  • Payables – It’s a firm’s obligation to pay its short-term debts to its suppliers.


What happens in the absence of this capital?


  • Without adequate operational capital, a business entity can’t cover its short-time liabilities on time. You can use working capital loan to strengthen your business in such circumstances.
  • A business with a healthy circulating capital can avail loans easily from the market from its excellent reputation.
  • Adequate operational capital maintains an uninterrupted flow of business operations by supplying payment for wages and raw materials.


Furthermore, it provides immediate funds to cover unforeseen contingencies thereby helping an enterprise to run successfully in a crisis period. Thus, it is imperative you have a steady flow of circulating capital at hand. You can avail these loans from financial institutions after verifying your eligibility criteria.

How to improve operational capital?

By calculating the receivables, inventories and payable by working capital formula, a company can enhance its operational capital. For instance –

  • Screening potential customers by their creditworthiness and monitoring their financial developments.
  • Critically examine the outstanding debts owed and ensure there is transparency between sales and the finance department.

Furthermore, there are alternate ways like optimising stocks to suit market conditions and strike a more extended payment period with lenders.

Pre-empting the working capital your business will require is perhaps one of the most important steps towards successful operations. As a business owner, you need to maintain an above-sufficient amount of such funds to optimise and streamline your business operations.

Continue Reading


TOP 4 Essay Writing Services in the USA: 2023 Edition



essay writing services reddit

As an increasing number of students seek assistance with their academic assignments, the demand for reliable essay writing services continues to grow. With so many options available, it can be challenging to identify the best service providers. To help you make an informed decision, we have compiled a list of the top 4 essay writing services in the USA for 2023. These services have been carefully evaluated based on their reputation, quality of work, customer satisfaction, and affordability. Read on to discover the top essay writing services that can provide you with the support you need to excel in your academic journey.

essay writing services reddit

essay writing services reddit

What Makes a Great Essay Writing Service

Before delving into the top essay writing services reddit, it’s essential to understand the criteria we used to evaluate them. A great essay-writing service should possess the following qualities:

  • Quality of Work: The service should deliver well-researched, original, and high-quality essays that meet academic standards.
  • Professional Writers: The service should have a team of qualified writers with expertise in various subjects who can handle diverse topics.
  • Timely Delivery: The service should be reliable and capable of delivering essays within the given deadline.
  • Customer Support: The service should provide excellent customer support, ensuring effective communication throughout the writing process.
  • Affordability: The service should offer reasonable pricing plans that are affordable for students while maintaining the quality of work.

Now, let’s explore the top 4 essay writing services in the USA for 2023.

TOP 4 Essay Writing Services in the USA: 2023 Edition

2.1 EssayPro

EssayPro is a highly reputable essay writing service known for its commitment to quality and customer satisfaction. They have a diverse team of experienced writers who can handle a wide range of subjects. EssayPro offers a user-friendly platform, allowing students to place orders easily and track the progress of their essays. Their pricing is competitive, and they offer additional features such as plagiarism reports and unlimited revisions.

2.2 Grademiners

Grademiners is a popular choice among students due to its excellent track record and reliability. They have a team of highly skilled writers who are proficient in various academic disciplines. Grademiners ensures on-time delivery and provides 24/7 customer support to address any concerns. They also offer free revisions and a money-back guarantee, ensuring customer satisfaction.

2.3 Ultius

Ultius is known for its exceptional writing services and commitment to customer privacy and security. They have a rigorous writer selection process, ensuring that only qualified professionals handle the essays. Ultius offers a wide range of writing services, including essay writing, editing, and proofreading. They also provide a mobile app for convenient communication and order tracking.

2.4 EduBirdie

EduBirdie is a trusted essay writing service that offers a unique feature called “choose your own writer.” Students can browse through profiles and select a writer who matches their requirements. This personalized approach allows for effective collaboration and ensures that the final essay meets the student’s expectations. EduBirdie also provides 24/7 customer support and guarantees 100% original and plagiarism-free content.

How We Evaluated the Services

To evaluate the essay writing services, we considered several factors, including:

  • Reputation and reliability
  • Quality of work and adherence to academic standards
  • Customer reviews and satisfaction
  • Pricing and affordability
  • Additional features and guarantees
  • Customer support and communication

By carefully analyzing these aspects, we identified the top 4 essay writing services that offer outstanding support to students.


Choosing a reliable essay writing service is crucial for students seeking academic assistance. The top 4 essay writing services mentioned in this article – EssayPro, Grademiners, Ultius, and EduBirdie – have proven their worth in terms of quality, reliability, and customer satisfaction. Whether you need help with an essay, research paper, or any other academic assignment, these services can provide you with the support you need to succeed in your studies.

Continue Reading


%d bloggers like this: