4.4 Capital requirement calculation

The calculation of the capital requirement is determined by the way in which the capital is used. A distinction can be made between:

• Fixed assets (e.g. investments) are calculated by adding the acquisition costs incurred for the goods in the fixed assets, e.g. machinery, equipment, start-up investments.
• Current assets (e.g. inventory turnover) are determined by multiplying the commitment period of the current assets by the average daily expenditure on them and adding the results:
• Total capital requirement (e.g. liquidity forecast) is determined from the difference between expenditure and income over time. In other words, by adding up the fixed capital and working capital requirements.