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Business Liquidity Tool

Working Capital Calculator

Calculate working capital, current ratio, quick ratio, liquidity position, and working capital as a percentage of current assets from your business balance sheet figures.

Instant results Liquidity ratios No data stored

Enter Current Assets & Liabilities

Add short-term assets and obligations to analyze your business liquidity position.

Current Assets

USD
USD
USD
USD
USD
USD

Current Liabilities

USD
USD
USD
USD
USD

Your Liquidity Breakdown

Review working capital and short-term liquidity ratios.

Net Working Capital

Positive
$40,000.00

Current assets minus current liabilities

Total Current Assets $90,000.00
Total Current Liabilities $55,000.00
Current Ratio 1.64
Quick Ratio 1.18
Working Capital Details
Cash & equivalents $25,000.00
Accounts receivable $30,000.00
Inventory $20,000.00
Marketable securities $5,000.00
Prepaid expenses $5,000.00
Other current assets $5,000.00
Total current assets $90,000.00
Accounts payable $25,000.00
Short-term debt $10,000.00
Accrued expenses $10,000.00
Taxes payable $5,000.00
Other current liabilities $5,000.00
Total current liabilities $55,000.00
Net working capital $35,000.00
Current ratio 1.64
Quick ratio 1.18
Working capital / assets 38.89%

Calculations are performed directly in your browser. Your business financial values are not stored by this calculator.

Business Liquidity

What Is Working Capital?

Working capital measures the difference between a company's current assets and current liabilities. It is commonly used to assess whether a business has enough short-term resources to meet its short-term financial obligations.

Current assets can include cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets expected to be used or converted into cash within the normal operating cycle.

Current liabilities may include accounts payable, short-term debt, accrued expenses, taxes payable, and other obligations due in the short term.

Working capital formula
Working Capital = Current Assets − Current Liabilities
Current ratio formula
Current Ratio = Current Assets ÷ Current Liabilities
Quick ratio formula
Quick Ratio = (Cash + Receivables + Marketable Securities) ÷ Current Liabilities
Calculation Process

How the Working Capital Calculator Works

The calculator totals the current assets and current liabilities you enter, subtracts liabilities from assets, and then calculates additional liquidity ratios.

01

Enter Current Assets

Add cash, receivables, inventory, securities, prepaid expenses, and other short-term assets.

02

Add Current Liabilities

Enter accounts payable, short-term debt, accrued expenses, taxes, and other obligations.

03

Review Liquidity

See working capital, current ratio, quick ratio, and the percentage of current assets represented by working capital.

Practical Example

Working Capital Calculation Example

Suppose a business has $90,000 in current assets and $55,000 in current liabilities. Working capital equals $35,000.

The current ratio would be approximately 1.64 because $90,000 divided by $55,000 equals about 1.64.

Example calculation
$90,000 Current Assets − $55,000 Current Liabilities = $35,000 Working Capital
Item Example Value Meaning
Current Assets $90,000 Short-term business resources
Current Liabilities $55,000 Short-term obligations
Working Capital $35,000 Assets remaining after current liabilities
Current Ratio 1.64 Current assets relative to liabilities
Interpreting Results

Positive vs. Negative Working Capital

Positive working capital means current assets are greater than current liabilities. This can indicate that a business has more short-term resources than short-term obligations.

Negative working capital means current liabilities exceed current assets. This may create short-term liquidity pressure, although the significance depends on the industry, cash flow cycle, inventory turnover, supplier terms, and business model.

Working capital should therefore be interpreted together with cash flow, current ratio, quick ratio, payment terms, and operating requirements rather than as a standalone score.

Liquidity Metrics

Working Capital vs. Current Ratio

Working capital is expressed as a currency amount, while the current ratio expresses current assets relative to current liabilities.

For example, two companies could both have $50,000 of working capital but very different current ratios depending on the size of their balance sheets.

Metric Formula Output
Working Capital Current Assets − Current Liabilities Currency amount
Current Ratio Current Assets ÷ Current Liabilities Ratio
Quick Ratio Quick Assets ÷ Current Liabilities Ratio
Common Questions

Working Capital Calculator FAQs

How do I calculate working capital?

Subtract total current liabilities from total current assets. If current assets are $100,000 and current liabilities are $60,000, working capital equals $40,000.

What is the working capital formula?

Working Capital = Current Assets − Current Liabilities.

What counts as current assets?

Current assets can include cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other short-term assets.

What counts as current liabilities?

Current liabilities may include accounts payable, short-term debt, accrued expenses, taxes payable, and other short-term financial obligations.

What does positive working capital mean?

Positive working capital means current assets are greater than current liabilities based on the figures entered.

What does negative working capital mean?

Negative working capital means current liabilities exceed current assets. The significance depends on the company's operating cycle and business model.

How do I calculate the current ratio?

Divide current assets by current liabilities. For example, $100,000 of current assets divided by $50,000 of current liabilities equals a current ratio of 2.00.

How does this calculator calculate quick ratio?

This calculator adds cash, accounts receivable, and marketable securities, then divides the total by current liabilities. Inventory and prepaid expenses are excluded.

Is working capital the same as cash?

No. Cash is only one component of current assets. Working capital compares all included current assets with current liabilities.

Does this calculator store my financial data?

No. All calculations are performed directly in your browser using JavaScript.

Note: This calculator provides general financial estimates based on the figures entered. Formal balance-sheet classifications and liquidity analysis can vary by accounting standards, industry, business structure, and company reporting policies.