Calculators
Working Capital Calculator
Calculate net working capital, the current ratio and the quick ratio from current assets and liabilities.
- Runs in your browser
- Nothing uploaded
The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
Everything you enter stays on your own machine. Nothing is sent to us or to anyone else, which you can confirm in your browser network tab.
What people use it for
- Checking liquidity before taking on debt
- Monitoring monthly balance sheets
- Preparing for a bank review
- Comparing companies
About this tool
What the Working Capital Calculator does
Working capital is current assets minus current liabilities: the cushion a business has to pay bills due within a year. The current ratio compares the two directly, and the quick ratio leaves out inventory, which can be slow to turn into cash.
Formula
- Working capital = current assets − current liabilities
- Current ratio = current assets ÷ current liabilities
- Quick ratio = (cash + receivables) ÷ current liabilities
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Cash and equivalents | $80,000 |
| Accounts receivable | $200,000 |
| Inventory | $170,000 |
| Other current assets | $20,000 |
| Accounts payable | $150,000 |
| Short-term debt | $60,000 |
| Other current liabilities | $50,000 |
| Result | Value |
|---|---|
| Net working capital | $210,000 |
| Current ratio | 1.81 |
| Quick ratio | 1.08 |
| Cash ratio | 0.31 |
| Current assets | $470,000 |
| Current liabilities | $260,000 |
How to read the result
A current ratio between roughly 1.2 and 2 is often treated as comfortable, but fast-moving retailers can run safely below 1 because they collect cash before paying suppliers.
Positive working capital is not the same as cash. Slow-paying customers and slow-moving stock can leave a business short of cash despite a healthy ratio.
Related calculators
- Cash Conversion Cycle Calculator: Calculate days inventory outstanding, days sales outstanding, days payables outstanding and the cash conversion cycle.
- Accounts Receivable Days Calculator: Calculate days sales outstanding, receivables turnover and the cash released by collecting faster.
- Accounts Payable Days Calculator: Calculate days payables outstanding, payables turnover and the cash effect of changing supplier payment timing.
- Accounts Receivable Aging Calculator: Analyse receivables by age bucket, the share overdue and an expected-loss bad debt allowance.
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Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
Current assets minus current liabilities, showing whether short-term resources cover short-term obligations.
Often 1.2 to 2, though the right level depends on how quickly the business turns stock and receivables into cash.
Inventory may take time to sell, so the quick ratio tests liquidity using only assets that convert to cash quickly.
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