Calculator · Cash Flow
Working Capital Calculator
Calculate net working capital and the current ratio from balance-sheet amounts, keeping illiquid assets distinct from available cash.
Formula and cost boundary
Net working capital = current assets − current liabilities; current ratio = current assets ÷ current liabilities
Enter balances from the same date, using your accounting classification of current assets and liabilities. Receivables and inventory are not immediately spendable cash. Current liabilities include more than supplier invoices, so this total differs from operating working capital. A zero liability denominator has no finite current ratio; the working-capital dollar amount is still valid.
Worked example: Positive working capital
The following inputs are hypothetical values for checking the calculation. They are not recommended prices, wages, margins or platform charges. Keep the units and period shown in each label when replacing them with your own records.
| Input | Example value |
|---|---|
| Cash and cash equivalents | $10,000 |
| Net collectible current receivables | $20,000 |
| Current inventory carrying amount | $15,000 |
| Other current assets | $5,000 |
| Total current liabilities | $30,000 |
| Result | Calculated value |
|---|---|
| Net working capital | $20,000 |
| Total current assets | $50,000 |
| Current assets per dollar of current liabilities | 1.67 ratio |
Using the result
Save the input set alongside the source date of each quote or cost record. Review the cost boundary before comparing this result with another report: a contribution measure may exclude overhead, and a cash measure follows payment dates. Display rounding does not change the underlying assumptions. Recalculate when an input changes; the tool does not predict future sales or collections.
Are any rates supplied automatically?
No. Numeric fields are your inputs. Example values demonstrate arithmetic only. Check your contracts and records for the amounts that apply to your business.
Why might a result be unavailable or negative?
A missing denominator or inconsistent inputs can make the calculation undefined. Those combinations are rejected or labeled explicitly. A valid negative result remains visible because it may identify a loss or cash shortfall.
Method reference: OpenStax: What Is Working Capital?. Checked October 22, 2026. Current assets, current liabilities and the cash conversion cycle; no liquidity ratio is prescribed.
Related calculators & guides
- Working Capital vs Cash: Read Both Measures
- Cash Conversion Cycle: Add the Timing Components
- Days Sales Outstanding: Use Credit Sales
- Days Inventory Outstanding: Cost-Based Timing
- Days Payable Outstanding: Choose the Right Base
- Early-Payment Discounts: Amount vs Cash Timing
- Growth and the Working-Capital Cash Gap
- Inventory Reorders: Quantity and Cash Timing
- Turn Receivables Aging into a Cash Forecast
- Negative Working Capital: Explain the Components
- Cash Conversion Cycle Calculator
- Working Capital Days Reference
- Cash Flow and Scenario Planning
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