The Days Of Working Capital Formula (also known as the DWC formula) is a business metric used to measure a company’s liquidity. It is calculated by dividing the total current assets by the total current liabilities. This calculation helps businesses determine how long they have before they run out of the funds needed to cover their day-to-day operations. Put simply, this formula measures the amount of time it takes for a company to turn its investments into cash. By analyzing this data over time, companies can get a better understanding of their financial health and make more informed decisions about their future.