Working Capital Calculator

Calculate your company's short-term financial health

Working Capital Formula

Working Capital = Current Assets - Current Liabilities

Current Ratio = Current Assets / Current Liabilities

These formulas help businesses understand their short-term financial health.

Why Working Capital Matters for SEO:

"Working Capital Formula" is a highly searched term because:

  • Business owners need to monitor liquidity
  • Creditors assess a company's short-term financial health
  • Investors evaluate operational efficiency
  • Financial analysts compare companies within industries

Key Insights:

Positive Working Capital

Indicates ability to pay short-term obligations and invest in growth

Negative Working Capital

May signal liquidity problems or aggressive growth strategies

How Our Working Capital Calculator Works

Enter Current Assets

Input your total current assets (cash, accounts receivable, inventory, etc.). These are assets expected to convert to cash within one year.

Provide Current Liabilities

Enter your current liabilities (accounts payable, short-term debt, etc.). These are obligations due within one year.

Get Financial Health Metrics

Receive your working capital amount and current ratio, along with interpretation to help you assess short-term financial position.