Working Capital Calculator

Calculate balance-sheet working capital and the current ratio from current assets and liabilities at one reporting date.

Daily Uses

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Calculate balance-sheet working capital and the current ratio from a breakdown of current assets and current liabilities at the same reporting date.

Enter your business figures

Cash and cash equivalents (currency)

Unrestricted current cash balances at the reporting date, not sales revenue.

Net current receivables (currency)

Current amounts due from customers after the allowance for uncollectible balances.

Inventory at cost (currency)

Current inventory carrying value, not its expected selling price.

Other current assets (currency)

Other amounts classified as current, including eligible prepayments; exclude long-term assets.

Current accounts payable (currency)

Supplier obligations at the same reporting date; do not duplicate other liabilities.

Short-term debt and current debt maturities (currency)

Borrowings and the current portion of long-term debt, not debt due in later years.

Other current liabilities (currency)

Current tax, payroll, accruals and other obligations not already included.

Each successful calculation uses one of this tool’s 8 daily free uses. Editing, resetting and invalid inputs use none. Your figures remain in your browser.

Worked example

Example output from the starting values. Enter your figures and press Calculate for your result.

Total current assets: 60,000 currency units
Total current liabilities: 40,000 currency units
Working capital: 20,000 currency units
Current ratio: 1.5 : 1
Balance-sheet position: Current assets exceed current liabilities

Formula

Current assets = cash + net current receivables + inventory + other current assets. Current liabilities = accounts payable + short-term debt + other current liabilities. Working capital = current assets − current liabilities. Current ratio = current assets ÷ current liabilities.

How to use this calculation

20,000 cash + 15,000 receivables + 20,000 inventory + 5,000 other assets gives 60,000 current assets. Liabilities of 25,000 + 10,000 + 5,000 total 40,000. Working capital is 20,000 and the current ratio is 1.5:1.

Use a single balance-sheet date and currency. Current classification follows the applicable accounting rules and operating cycle; exclude non-current balances and avoid double-counting. Enter genuine credit or overdraft liabilities in the correct liability category rather than as negative assets.
This is total balance-sheet working capital, including cash and current debt, not cash-free/debt-free operating working capital or a change in working capital. The current ratio is undefined when current liabilities are zero; the working-capital amount is still calculated.
Positive working capital does not mean all assets are spendable cash, and a ratio alone does not establish financial health. Inventory liquidity, receivables collectability, seasonality and payment timing matter. Negative working capital can require review but is not automatically evidence of insolvency.

Formula reference: AccountingCoach: Current Ratio and Working Capital. General planning information, not a guarantee of business results.

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