Working Capital Calculator
Determine Net Working Capital, evaluate Current Ratio and Quick Ratio liquidity metrics, and assess short-term business solvency.
Net Working Capital: —
Net working capital measures your short-term financial health and ability to satisfy upcoming liabilities.
Current Assets & Liabilities Split
Balance Sheet Liquidity Comparison
Comparison of Total Current Assets, Quick Assets, and Current Liabilities
Working Capital Balance Sheet Breakdown
| Category | Balance Sheet Component | Amount | Share of Category |
|---|
Current Ratio Benchmark
A Current Ratio between 1.5x and 2.0x indicates healthy liquidity. A ratio below 1.0x indicates a working capital deficit where liabilities exceed liquid assets.
Quick Ratio (Acid-Test)
The Quick Ratio excludes Inventory from current assets (since stock takes time to liquidate). A Quick Ratio $\ge$ 1.0x ensures immediate debt coverage.
Working Capital Management
Optimizing Working Capital requires accelerating Accounts Receivable collection (DSO) and extending Accounts Payable terms (DPO) without disrupting suppliers.