Working Capital Calculator
Calculate working capital, current ratio, and quick ratio from current assets and current liabilities. Assess your business liquidity and financial health.
Enter values and click Calculate Capital to see results
Formula
What Is Working Capital?
Working capital is the difference between a company's current assets and current liabilities. It measures a company's short-term financial health and its ability to cover day-to-day operations.
Working Capital Formulas
Working Capital = Total Current Assets − Total Current Liabilities
Current Ratio = Total Current Assets / Total Current Liabilities
Quick Ratio = (Current Assets − Inventory) / Current Liabilities
Healthy Ratios
A current ratio between 1.5 and 3.0 is generally considered healthy. A quick ratio above 1.0 indicates good short-term liquidity without relying on inventory sales. Ratios below 1.0 may signal liquidity risk.
Managing Working Capital
Effective working capital management involves optimising receivables collection, managing inventory levels, and negotiating favourable payment terms with suppliers. Excess working capital ties up cash, while insufficient working capital can lead to operational difficulties.
Related Tools
- Profit Margin Calculator – Calculate profit margins
- Break-Even Calculator – Find your break-even point
- Operating Margin Calculator – Calculate EBIT margin
Frequently Asked Questions
What is a healthy current ratio?
A current ratio between 1.5 and 3.0 is generally considered healthy. Below 1.0 means liabilities exceed assets (liquidity risk). Above 3.0 may indicate inefficient use of assets.
Is this calculator free, and do I need to sign up?
Yes, it is completely free with no sign-up. There are no usage limits and no paywalls.
Are my inputs saved or sent to any server?
No. Every calculation happens entirely in your browser. Nothing you type is uploaded, logged, or shared with us or any third party.