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Working Capital calculator

Working capital is a financial indicator that measures the operating liquidity available to a business, also known as net working capital or working capital ratio. Working capital formula is:

Working capital formula

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Input   Result
Current Assets   Working Capital: $ 0.00
Current liabilities  
     
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Interpretation of Working Capital

Positive working capital means that the company is able to pay off its short-term liabilities.
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Working capital management

Working capital management refers to the decisions relating to working capital and short-term financing.
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Definitions and terms used in the Working Capital calculator

  • Current Assets: the assets that are expected to be converted into cash or otherwise used up within a year or one business cycle (whichever is longer). Typical current assets include cash and cash equivalents, accounts receivable, inventory, marketable securities, the portion of prepaid expenses which will be used within a year and other assets that could be converted to cash in less than one year.

    Current Assets = Cash + Bank + Accounts Receivable + Marketable Securities + Inventory + Prepaid Expenses
  • Current liabilities (short term debt): obligations or debts that are due within one fiscal year or the operating cycle. For example, accounts payable, accrued liabilities, dividends, unpaid taxes and other debts that are due within one year.

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1. Complementarily, in order to calculate the Working Capital for your business, we offer a calculator free of charge. However, we appreciate a donation if you value our tools and services.

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3. Although C. C. D. Consultants Inc.'s personnel has verified and validated the Working Capital calculator, C. C. D. Consultants Inc. is not responsible for any outcome derived from its use. The use of Working Capital calculator is the sole responsibility of the user and the outcome is not meant to be used for legal, tax, or investment advice.