Working Capital Calculator
Enter your current assets and current liabilities to calculate working capital and the current ratio.
Working Capital Calculator
Calculate working capital and the current ratio from current assets and liabilities.
Working capital measures whether a business has enough short-term assets to cover its short-term obligations. The related current ratio expresses the same relationship as a multiple rather than a dollar amount.
Example
- With the default values shown above, this calculator returns: Working Capital ≈ USD 200,000.00; Current Ratio ≈ 1.67.
Frequently Asked Questions
What is a good current ratio?
A current ratio above 1.0 generally means a business can cover its short-term liabilities with its short-term assets; a ratio between 1.5 and 3 is often considered healthy, though this varies by industry.
What does negative working capital mean?
Negative working capital means current liabilities exceed current assets, which can signal potential short-term liquidity problems, though some business models (like high-volume retail) can operate this way sustainably.