determine business capital demand and capital turnover

Dear Teacher,

Thank for your great lecture.

I have some promblem that I hope you could help me clear:

1. in your note, Working capital = current asset – current liability.

in real life, when I make financial analysis to make a business plan of specific item ( for example: coffee goods business ) for purpose of bank short-term loans.. I have some information relatings to coffee business: Revenue, cost of sale, relatived expensive, and profit. I need to find out the firm’s capital needs and capital turnover, so I did as following:

– determine working capital demands for coffee business = current asset – current liability (information on SOFP)

– determine capital turnover = 365 days / cash operating cycle

capital turnover = 365 days / ( inventory days + receivable days – payable days )

I didn’t know whether my above calculation is correct . If I were wrong, Could you please help me clear

I appreaciate your help and hope to receive your reply soon

Thanks and best regards