How to Calculate Incremental Working Capital
Incremental working capital is the additional working capital required to support the growth of a business. It is the difference in working capital between two periods of time, typically the current period and the next period. Calculating incremental working capital is important for businesses because it provides insight into the additional funds needed to support growth and for lenders, it provides information about the ability of a business to repay a loan. We’ll show you how to calculate incremental working capital in Excel.