Working Capital Ratio Calculator
Calculate your working capital ratio to assess your business’s short-term liquidity and financial health. Understand if you have enough assets to cover liabilities.
Select Currency
Why Currency Matters
Working capital ratios are universal, but currency selection helps contextualize absolute values for your business location and reporting requirements.
Step 1: Current Assets
Understanding Current Assets
Current assets are resources expected to be converted to cash within one year. Include cash, accounts receivable, inventory, marketable securities, and prepaid expenses.
Step 2: Current Liabilities
About Current Liabilities
Current liabilities are obligations due within one year. Include accounts payable, short-term debt, accrued expenses, and other short-term obligations.
Financial Analysis Results
Working Capital Ratio
Industry Benchmark Comparison
| Industry | Average Ratio | Your Ratio | Assessment |
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Assets vs Liabilities Breakdown
Working Capital Formula
Working Capital Ratio = Current Assets ÷ Current Liabilities
Net Working Capital = Current Assets – Current Liabilities
Quick Ratio = (Current Assets – Inventory) ÷ Current Liabilities
A ratio above 1.0 indicates positive working capital, while below 1.0 suggests potential liquidity issues.
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