Working Capital Calculator

About this calculator

This calculator subtracts current liabilities from current assets to find working capital (the cash a business has available for day-to-day operations), and divides current assets by current liabilities to find the current ratio — a ratio above 1.0 generally means a company can cover its short-term obligations, while a ratio well below 1.0 signals a potential liquidity problem.

Small business owners checking whether they can cover payroll and supplier payments over the next few months, accountants preparing financial statements, and lenders or investors assessing a company's short-term financial health before extending credit all use these two figures together, since working capital shows the absolute cash cushion while the current ratio shows it relative to the size of the business.