Working Capital Calculator
Enter balance sheet figures to calculate working capital, current ratio, and quick ratio — three core measures of short-term financial health.
Use the Working Capital Calculator
Balance Sheet Inputs
Enter values in the same currency. Use 0 if a line does not apply.
Cash, receivables, inventory, prepaid expenses, etc.
Needed to compute the quick ratio. Enter 0 if none.
Payables, accruals, short-term debt due within 12 months.
Enter balance sheet figures on the left to see results.
| Current Assets (A) | — |
| Inventory (I) | — |
| Current Liabilities (L) | — |
| Working Capital = A − L | — |
| Current Ratio = A ÷ L | — |
| Quick Ratio = (A − I) ÷ L | — |
| Metric | Below target | Healthy | Note |
|---|---|---|---|
| Working Capital | < 0 | > 0 | Positive = buffer exists |
| Current Ratio | < 1.0 | 1.5 – 3.0 | > 3.0 may be idle assets |
| Quick Ratio | < 1.0 | 1.0 – 2.0 | Excludes inventory |
Summary
Working capital is the difference between current assets and current liabilities. A positive figure means the company can meet short-term obligations from its own resources. This calculator also shows the current ratio and quick ratio so you can compare liquidity from three angles at once — a complete short-term solvency snapshot from a single balance sheet entry.
How it works
- Enter total current assets: cash, receivables, inventory, prepaid expenses, and any other asset due within 12 months.
- Enter inventory separately — it is needed to compute the more conservative quick ratio.
- Enter total current liabilities: payables, accrued expenses, and debt due within 12 months.
- Click Calculate to see working capital, current ratio, and quick ratio.
- Read the color-coded interpretation for each metric against standard benchmarks.
- Adjust inputs to run what-if scenarios (e.g., paying down short-term debt).
Use cases
- Assess whether a business can fund daily operations without new financing.
- Evaluate a supplier or customer for credit risk before extending terms.
- Track working capital trends quarter-over-quarter.
- Prepare for a bank covenant review that sets a minimum current ratio.
- Screen stocks: filter out companies with negative working capital.
- Model the impact of collecting receivables faster or stretching payables.
- Teach balance sheet liquidity analysis in a finance course.
- Support investor presentations with documented liquidity metrics.