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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.
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