Working Capital Ratio Calculator

About this calculator

The working capital ratio, also called the current ratio, divides current assets by current liabilities: Current Ratio = Current Assets ÷ Current Liabilities. The calculator also reports net working capital in currency (Current Assets − Current Liabilities), which is the actual cushion of resources available after covering everything due within a year.

A ratio above 1.0 means a company can theoretically cover its short-term obligations with assets that will turn into cash within the year, while a ratio far above 2 can suggest cash or inventory is sitting idle instead of being reinvested. Lenders check it before extending short-term credit, and business owners track it to catch a liquidity squeeze before it becomes a cash crisis.