Working Capital Investment Solution

STEP 0: Pre-Calculation Summary
Formula Used
Working Capital Investment = Total Capital Investment-Fixed Capital Investment
WCI = TCI-FCI
This formula uses 3 Variables
Variables Used
Working Capital Investment - Working Capital Investment in $ term refers to the amount of capital that a business invests in its day-to-day operational activities to ensure smooth and efficient functioning.
Total Capital Investment - Total Capital Investment in $ terms refers to the overall amount of money that a company invests in a particular project, venture, or business initiative.
Fixed Capital Investment - Fixed Capital Investment in $ term referred to as (CapEx), represents the funds that a company allocates for the acquisition, construction, expansion, or improvement of long-term physical assets.
STEP 1: Convert Input(s) to Base Unit
Total Capital Investment: 20000 --> No Conversion Required
Fixed Capital Investment: 14000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
WCI = TCI-FCI --> 20000-14000
Evaluating ... ...
WCI = 6000
STEP 3: Convert Result to Output's Unit
6000 --> No Conversion Required
FINAL ANSWER
6000 <-- Working Capital Investment
(Calculation completed in 00.004 seconds)

Credits

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Created by Heet
Thadomal Shahani Engineering College (Tsec), Mumbai
Heet has created this Calculator and 200+ more calculators!
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Verified by Vaibhav Mishra
DJ Sanghvi College of Engineering (DJSCE), Mumbai
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11 Cost Estimation Calculators

Capital Cost of Project with Capacity Q2 using Sixth Tenth Rule
​ Go Capital Cost of Project with Capacity Q2 = Capital Cost of Project with Capacity Q1*((Capacity of Equipment 2/Capacity of Equipment 1)^(Value of Index))*(Cost Index 2/Cost Index 1)
Capital Cost of Project with Capacity Q1 using Sixth Tenth Rule
​ Go Capital Cost of Project with Capacity Q1 = Capital Cost of Project with Capacity Q2*((Capacity of Equipment 1/Capacity of Equipment 2)^(Value of Index))*(Cost Index 2/Cost Index 1)
Fixed Cost at Breakeven Point
​ Go Fixed Cost = Production Capacity at Breakeven Point*Selling Cost per Unit-Production Capacity at Breakeven Point*Production Cost per Unit
Cash Flow
​ Go Cash Flow = ((Total Sale Revenue-Total Product Cost-Depreciation)*(1-Tax Rate))+Depreciation
Net Profit
​ Go Net Profit = (Total Sale Revenue-Total Product Cost-Depreciation)*(1-Tax Rate)
Working Capital Investment
​ Go Working Capital Investment = Total Capital Investment-Fixed Capital Investment
Total Capital Investment
​ Go Total Capital Investment = Fixed Capital Investment+Working Capital Investment
Fixed Capital Investment
​ Go Fixed Capital Investment = Total Capital Investment-Working Capital Investment
Turndown Ratio
​ Go Turndown Ratio = Fixed Capital Investment/Total Capital Investment
Turnover Ratio
​ Go Turnover Ratio = Gross Annual Sales/Fixed Capital Investment
Total Production Cost Considering Fixed Cost and Variable Cost
​ Go Total Product Cost = Fixed Cost+Variable Cost

Working Capital Investment Formula

Working Capital Investment = Total Capital Investment-Fixed Capital Investment
WCI = TCI-FCI

What is Capital Investment?

Capital investment, also known as capital expenditure or CAPEX, refers to the funds that a business or organization allocates for the acquisition, expansion, improvement, or maintenance of long-term assets and physical capital. These assets are typically used to generate income, provide goods or services, and contribute to the company's growth and profitability. Capital investments are a fundamental part of strategic planning and financial management for businesses in various industries.

What is Cost Estimation ?

Cost estimation is the process of estimating the total cost, typically in monetary terms, required to complete a project, construct a facility, develop a product, or provide a service. It is a critical aspect of project management, business planning, and decision-making. Cost estimation serves various purposes, including budgeting, financial planning, and assessing the feasibility of a project. Here are the key components and considerations of cost estimation.

How to Calculate Working Capital Investment?

Working Capital Investment calculator uses Working Capital Investment = Total Capital Investment-Fixed Capital Investment to calculate the Working Capital Investment, The Working Capital Investment formula, is the amount of money that a company invests in its day-to-day operational activities. It represents the capital used to manage the short-term financial needs and ongoing business operations of a company. Working Capital Investment is denoted by WCI symbol.

How to calculate Working Capital Investment using this online calculator? To use this online calculator for Working Capital Investment, enter Total Capital Investment (TCI) & Fixed Capital Investment (FCI) and hit the calculate button. Here is how the Working Capital Investment calculation can be explained with given input values -> 19900 = 20000-14000.

FAQ

What is Working Capital Investment?
The Working Capital Investment formula, is the amount of money that a company invests in its day-to-day operational activities. It represents the capital used to manage the short-term financial needs and ongoing business operations of a company and is represented as WCI = TCI-FCI or Working Capital Investment = Total Capital Investment-Fixed Capital Investment. Total Capital Investment in $ terms refers to the overall amount of money that a company invests in a particular project, venture, or business initiative & Fixed Capital Investment in $ term referred to as (CapEx), represents the funds that a company allocates for the acquisition, construction, expansion, or improvement of long-term physical assets.
How to calculate Working Capital Investment?
The Working Capital Investment formula, is the amount of money that a company invests in its day-to-day operational activities. It represents the capital used to manage the short-term financial needs and ongoing business operations of a company is calculated using Working Capital Investment = Total Capital Investment-Fixed Capital Investment. To calculate Working Capital Investment, you need Total Capital Investment (TCI) & Fixed Capital Investment (FCI). With our tool, you need to enter the respective value for Total Capital Investment & Fixed Capital Investment and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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