Working capital calculator
See whether your business can cover its short-term obligations, measured three complementary ways: in dollars, and as two liquidity ratios.
Working capital
$75,000.00
Current ratio
2.00
Current assets ÷ current liabilities
Quick ratio (acid-test)
1.60
(Current assets − inventory) ÷ current liabilities
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How this is calculated
Working capital is current assets minus current liabilities — the dollar cushion available to cover obligations due within the next 12 months. The current ratio divides the same two numbers instead of subtracting them, showing how many times over your current assets cover your current liabilities. The quick ratio goes a step further and excludes inventory, the current asset that's hardest to convert into cash quickly, for a stricter read on immediate liquidity. None of the three replaces the others: the dollar amount doesn't say whether it's enough for your business's size, and the ratios alone don't show the real size of the cushion.
This is an educational estimate, not financial advice.