The Working Capital Cycle Formula is a financial metric used to measure the health of a business. It measures the amount of time it takes for a business to convert its non-cash assets like inventory into cash. By tracking the working capital cycle formula, businesses can more accurately determine their current position in terms of cash flow and liquidity. Furthermore, understanding working capital needs will enable companies to plan for future investments and changes to their business model. Understanding and managing your company’s working capital cycle has never been more important.