Free Working Capital Calculator
Calculate working capital and the working capital ratio to evaluate short-term financial health and operational efficiency.
Working Capital
$150,000.00
Working Capital vs Total Current Assets
How to Calculate Working Capital
Formula
Working Capital = Current Assets - Current Liabilities Working Capital Ratio = Current Assets / Current Liabilities
Working capital represents the operational liquidity available to run day-to-day business activities. Positive working capital means you have a buffer; negative working capital means short-term debts exceed short-term assets. Measuring working capital as a percentage of revenue helps you compare across different-sized businesses.
Example Calculation
A company has $450,000 in current assets, $300,000 in current liabilities, and $2,000,000 in annual revenue.
- 01Working Capital = $450,000 - $300,000 = $150,000
- 02Working Capital Ratio = $450,000 / $300,000 = 1.50
- 03WC as % of Revenue = $150,000 / $2,000,000 x 100 = 7.5%
Frequently Asked Questions
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