Balance Sheet & Debt

Working Capital Improvement

Working Capital Improvement is a Balance Sheet & Debt screen. It checks every NSE-listed stock against 1 condition computed from nightly data, after excluding heavily pledged promoters and very small market caps. This page explains the rule, each figure and its source. It lists no stocks and is not advice.

What it does and why

Working capital management is the operational heartbeat of a non-financial business: it reveals whether management is tightening receivable cycles, negotiating better payable terms, and keeping inventory lean. A current ratio that improves across two consecutive annual periods signals deliberate, sustained improvement — not a one-year accounting artefact. Unlike profitability screens that capture margin expansion, this screen isolates the cash conversion dimension: a company can grow earnings while simultaneously degrading its liquidity if working capital is ballooning. No other screener in the QP14 universe tracks this liquidity trend. Banks and financial institutions are excluded because they have no current_assets or current_liabilities in the FinEdge data model — the metric is structurally undefined for their balance sheets.

The rule, step by step

A stock must satisfy every condition below. Conditions are grouped under the pillar they test.

Liquidity Health

Described in the philosophy; not a pass/fail condition in the current rule

Improvement Trend

Current Ratio Improving is true

Hard excludes

Promoter pledge above 30% of the promoter's holding
Market cap below ₹500 crore

Passes the screen

Ranked by Market Cap, highest first.

The figures it uses

Current Ratio Improving

Used in a condition

Formula: True when the current ratio rose in each of the last two year-on-year steps (three annual balance sheets)
Input fields: current assets, current liabilities
Source of record: FinEdge · /api/v1/financials/{symbol}?statement_code=bs&period=annual
Refresh: Recomputed nightly (06:30 IST job); rows older than 3 days are excluded from screens

Current Ratio

Shown with results

Formula: Current assets ÷ current liabilities from the latest annual balance sheet
Input fields: current assets, current liabilities
Source of record: FinEdge · /api/v1/financials/{symbol}?statement_code=bs&period=annual
Refresh: Recomputed nightly (06:30 IST job); rows older than 3 days are excluded from screens

Market Cap

Used for ranking

Formula: Close × paid-up equity shares ÷ 10,000,000 (₹ crore)
Input fields: close, paidUpEquityShares
Source of record: Upstox · public historical candles, NSE_EQ|{ISIN} (no auth)FinEdge · /api/v1/daily-quotes/{symbol} (fallback)FinEdge · /api/v1/shareholdings/summary/{symbol}?period=quarterly
Corporate actions: Adjusted for corporate actions before use
Refresh: Recomputed nightly (06:30 IST job); rows older than 3 days are excluded from screens

Promoter Pledge

Hard exclude input

Formula: Pledged shares as a share of the promoter's own holding: pledgedSharesPct ÷ promoter holding × 100; blank when the quarter is not listed
Input fields: pledgedSharesPct, promoter holding
Source of record: FinEdge · /api/v1/shareholdings/summary/{symbol}?period=quarterlyFinEdge · /api/v1/shareholdings/pattern/{symbol}?period=quarterly
Refresh: Recomputed nightly (06:30 IST job); rows older than 3 days are excluded from screens

What each figure means

Current Ratio (Latest Year)

Current assets divided by current liabilities for the most recent annual reporting period. Sourced from FinEdge balance sheet (statement_code=bs). Not available for banks — screen skips any stock where this field is null.

High is better

Current Ratio Change — Year 1 (Latest vs Prior)

Current ratio in the latest annual period minus current ratio in the prior annual period. Positive value means the ratio improved year-on-year.

High is better

Current Ratio Change — Year 2 (Prior vs Two Years Ago)

Current ratio in the prior annual period minus current ratio two annual periods ago. Positive value means the ratio improved in that prior year-on-year comparison.

High is better

Try the rule

Type hypothetical values to see which conditions they satisfy. These are not real stocks and nothing here is stored.

Current Ratio ImprovingPromoter Pledge

Current Ratio Improving is true—

Enter values to begin

A worked example

Loading the worked example…

Evidence

What the harness measured

no_verified_figureNot yet tested

We have not measured this screen yet, so there is no record to explain.

Live monitoring

Not yet testable — 5 of 6 points needed to chart a rolling information coefficient.

5-day IC -0.050 · signal date 2026-10-13 · n 4477
22-day IC -0.010 · signal date 2026-09-10 · n 3881

This is a historical, statistical measurement produced by FINOME TECHNOLOGIES PVT LTD's research harness on past data. It is not a prediction, and past results do not indicate future results. The universe is today's Nifty 500 constituents, so the sample is affected by survivorship bias. It describes how a screen's selections behaved in the past and does not constitute investment advice or a recommendation.

Run this screen

Rule version 1.0.0

1.0.0 · 2026-10-20 — First versioned rule: every screen's conditions, ordering and hard exclude were transcribed from the served definitions into one specification. No behaviour change.

Questions

How is this screen calculated?: Each stock is tested against 1 condition using figures computed from exchange prices and company filings, adjusted for corporate actions. The rule is versioned; this page shows version 1.0.0.
How often does the screen update?: The figures are recomputed once each trading day after the nightly compute. A stock whose figures are more than three days old is left out rather than shown stale.
Is this investment advice?: No. This is educational material describing a screening method. It does not recommend any security and does not consider your circumstances.

Educational use only — GoQuant is a research tool. This page explains a screening method and is not a recommendation. Investment advice is provided by FINOME TECHNOLOGIES PVT LTD (AltQube), SEBI-registered Investment Adviser, registration no. INA000018373, under a signed advisory agreement and after a risk profile. Past performance is not indicative of future results.