Working Capital Calculator

Frequently Asked Questions

• What numbers should I actually plug into “Current Assets” and “Current Liabilities” in this working capital calculator? +

  For Current Assets, use items that can be turned into cash within 12 months: cash and cash equivalents, marketable securities, accounts receivable, inventory, and prepaid expenses. For Current Liabilities, include obligations due within 12 months: accounts payable, short-term loans, the current portion of long-term debt, taxes payable, wages, and other accrued expenses.

• How do I know if the working capital result from this calculator is “good” or “bad” for my business? +

  A positive result means your current assets exceed current liabilities and you have a liquidity buffer; a negative result signals potential short-term cash stress and a higher risk of missing payments. Many advisors also look at the working capital (current) ratio , where values roughly between 1.2 and 2.0 are often viewed as healthy, though acceptable levels vary by industry and business model.

• What’s the difference between the working capital number from this calculator and the working capital (current) ratio I see in reports? +

  This calculator gives you the absolute dollar amount of working capital, showing how much short-term funding you have left after covering near-term obligations. The working capital (current) ratio uses the same inputs but divides assets by liabilities, , showing how many dollars of current assets back each dollar of current liabilities and making it easier to compare across time and against peers.