Working Capital Calculator
Work out working capital, the current ratio and the quick ratio from the current assets and liabilities on your balance sheet.
- Free
- No sign-up to try
- Works as you type
Working capital
Working capital
$160,000
Current ratio
2.14x
Quick ratio
1.50x
Current assets
$300,000
- Current assets = cash + receivables + inventory + other current assets.
- Current liabilities = payables + debt due within a year + other current liabilities.
- Working capital = current assets − current liabilities; current ratio = assets ÷ liabilities.
- Quick ratio = (current assets − inventory) ÷ current liabilities.
Free, no sign-up to try. Save it as a live calculator you can share; an estimate from the numbers you enter, not financial advice. Check the result against your own records before you rely on it.
How it works
How the Working Capital Calculator works
- 1
Enter your numbers
Every result updates as you type, with the formula shown under it.
- 2
Check the method
See how each number is worked out and what it assumes.
- 3
Save it as a Room
Share a live calculator: others can change the numbers and see the result update.
Worked example
What it makes
Example inputs
- Cash
- $80,000
- Accounts receivable
- $120,000
- Inventory
- $90,000
- Other current assets
- $10,000
- Accounts payable
- $70,000
- Debt due within a year
- $40,000
- Other current liabilities (accruals, taxes due)
- $30,000
Results
- Working capital
- $160,000
- Current ratio
- 2.14x
- Quick ratio
- 1.50x
- Current assets
- $300,000
How it's calculated
- Current assets = cash + receivables + inventory + other current assets.
- Current liabilities = payables + debt due within a year + other current liabilities.
- Working capital = current assets − current liabilities; current ratio = assets ÷ liabilities.
- Quick ratio = (current assets − inventory) ÷ current liabilities.
- Assumes: All figures are from the same balance sheet date.
- Assumes: The quick ratio here keeps other current assets in; leave out any (such as prepaid costs) you can't turn into cash quickly.
An estimate from the numbers you enter, not financial advice. Check the result against your own records before you rely on it.
Who it's for
Who uses it
Business owners
Check you can cover the bills due this year.
Accountants
Share the ratios with a client alongside the inputs.
Students
Practise liquidity ratios with the method shown.
Good to know
What to consider
- All figures should come from the same balance sheet date.
- Ratios differ a lot by industry: compare with your own history and similar businesses.
Questions
About the Working Capital Calculator
What's the difference between the current and quick ratio?
The current ratio counts all current assets. The quick ratio leaves out inventory, because it can take time to sell, so it shows what you could cover with cash and money owed to you.
Can I share the calculator with my team or a client?
Yes. The Room keeps the calculator live: anyone with the link can change the numbers and see the result update, with the method and assumptions on the same page.
Make your calculator now
Free, no sign-up to try. It becomes a Room you can edit, publish and share.
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