Working Capital Calculator
Calculate working capital, current ratio, quick ratio, cash ratio, and cash conversion cycle. Includes acid test, WC turnover, and liquidity analysis.
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Working Capital
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Current Ratio —
Quick Ratio —
Extended More scenarios, charts & detailed breakdown ▾
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Quick Ratio
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Total Current Assets —
Current Ratio —
Cash Ratio —
Professional Full parameters & maximum detail ▾
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Liquidity Ratios
Net Working Capital —
Current Ratio —
Quick Ratio —
Cash Ratio —
Acid Test —
Efficiency Metrics
WC to Sales Ratio —
Working Capital Turnover —
Cash Conversion Cycle —
Guidance
Recommended Buffer (10% rev) —
How to Use This Calculator
- Enter current assets and current liabilities for an instant working capital and current ratio.
- Use Quick Ratio tab to break down assets into cash, receivables, and inventory.
- Use Working Capital Cycle to calculate your cash conversion cycle from DIO, DSO, and DPO.
- The Professional tier provides all liquidity ratios and efficiency metrics.
Formula
Working Capital = Current Assets − Current Liabilities
Current Ratio = Current Assets ÷ Current Liabilities
Quick Ratio = (Cash + Receivables) ÷ Current Liabilities
CCC = DIO + DSO − DPO
Example
Example: Cash $80K, Receivables $120K, Inventory $200K, Total Liabilities $150K → Working Capital $250K, Current Ratio 2.67, Quick Ratio 1.33. CCC (DIO 45 + DSO 30 − DPO 20) = 55 days.
Frequently Asked Questions
- Working Capital = Current Assets − Current Liabilities. It measures short-term liquidity — the cash available to fund day-to-day operations. Positive working capital means the business can pay near-term obligations.
- Current Ratio = Current Assets ÷ Current Liabilities. A ratio of 1.5–2.0 is generally healthy. Below 1.0 signals potential liquidity problems; above 3.0 may indicate inefficient use of assets.
- Quick Ratio = (Cash + Receivables) ÷ Current Liabilities. It excludes inventory, which may not be quickly convertible to cash. A quick ratio above 1.0 is considered safe.
- CCC = DIO + DSO − DPO. It measures how long cash is tied up in operations. A shorter (or negative) CCC is better — it means you collect cash faster than you pay suppliers.
- Most businesses target 10–20% of annual revenue as working capital. Too low risks cash shortfalls; too high suggests idle capital that could be reinvested.