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Working Capital Calculator

Measure your business liquidity and short-term financial health.

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Fill in the fields above and click Calculate to see your results.

How to use

Measure your business liquidity and short-term financial health.

How it's calculated

Working Capital

current_assets - current_liabilities

Capital available for daily operations

Current Ratio

current_assets / current_liabilities

Measures ability to pay short-term obligations

Examples

Retail shop liquidity check

  • Current Assets:500,000,000
  • Current Liabilities:300,000,000

Industry Benchmarks

Metric Typical Range
A current ratio between 1.2 and 2.0 is usually considered healthy 2

Frequently Asked Questions

What is Working Capital?

Working capital is the difference between a company's current assets (like cash and accounts receivable) and its current liabilities (like accounts payable and short-term debt).

What is a good Current Ratio?

A current ratio above 1.0 indicates that a company has more assets than liabilities. A ratio between 1.5 and 2.0 is ideal for most industries.

How can I increase my working capital?

You can increase working capital by improving inventory management, collecting accounts receivable faster, or refinancing short-term debt into long-term debt.