Short-term liquidity (CA − CL). The Working Capital Calculator takes current assets, current liabilities and returns working capital plus current ratio. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Financial ratios are only useful in comparison: against last year, against a competitor, or against the benchmark for your industry. Take the figures from the same set of accounts, note whether they are yearly or monthly, and read each ratio alongside the others in its family. Use the worked example below to check the maths against your own figures.
How the Working Capital Calculator works
Working capital is the buffer of short-term resources over short-term obligations. Negative working capital is normal for some business models (supermarkets, subscriptions) and a warning sign for most others.
Worked example
With the example values (current assets of $500,000, current liabilities of $300,000), the working capital is $200,000.00; current ratio 1.67x. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is working capital calculated?
working capital = current assets − current liabilities.
Which figures do I need?
Current assets, current liabilities. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
What is a good value for this ratio?
Benchmarks differ by industry, size and business model, so compare with companies like yours and with your own history. A ratio moving in the wrong direction for several periods matters more than any single number.
