How to use the Working Capital Calculator
- Enter current assets and liabilities.
- Enter inventory for the quick ratio.
- Read the ratios.
How it works
Working capital = Current assets − Current liabilities. Current ratio = Current assets ÷ Current liabilities. Quick ratio = (Current assets − Inventory) ÷ Current liabilities.
Worked example
Current assets 6.0M, liabilities 3.6M, inventory 1.8M: working capital 2.4M, current ratio 1.67, quick ratio 1.17.
Good to know
A ratio below 1 signals possible difficulty meeting short-term obligations.
Healthy ranges differ by industry.
Faster collections and slower, on-terms payments improve working capital.
Frequently asked questions
Current assets minus current liabilities.
The quick ratio excludes inventory because it is less liquid.
Often 1.5–2, depending on the industry.
Results are estimates for information only and are not accounting, financial or legal advice.