Working Capital Calculator
Calculate your business’s working capital to assess short-term financial health. Determine working capital from current assets and current liabilities in multiple currencies.
Step 1: Current Assets
Current Assets Formula
Current Assets = Cash + Accounts Receivable + Inventory + Other Current Assets
These are assets that can be converted to cash within one year.
Step 2: Current Liabilities
Working Capital Formula
Working Capital = Current Assets – Current Liabilities
Positive working capital indicates a company can pay its short-term obligations.
Financial Health Results
Working Capital
Industry Comparison
| Industry | Avg. Working Capital | Avg. Current Ratio | Financial Health |
|---|
Financial Formulas
Working Capital = Current Assets – Current Liabilities
Where:
• Current Assets = Cash + Accounts Receivable + Inventory + Other Current Assets
• Current Liabilities = Accounts Payable + Short-Term Loans + Accrued Expenses + Other Current Liabilities
Key Ratios:
• Current Ratio = Current Assets ÷ Current Liabilities
• Quick Ratio = (Current Assets – Inventory) ÷ Current Liabilities
Example Calculation
Example: Small Manufacturing Business
Current Assets:
• Cash: $50,000
• Accounts Receivable: $75,000
• Inventory: $30,000
• Other: $10,000
Total: $165,000
Current Liabilities:
• Accounts Payable: $45,000
• Short-Term Loans: $25,000
• Accrued Expenses: $15,000
• Other: $5,000
Total: $90,000
Working Capital: $165,000 – $90,000 = $75,000
Current Ratio: $165,000 ÷ $90,000 = 1.83
Quick Ratio: ($165,000 – $30,000) ÷ $90,000 = 1.50
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