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Working Capital Calculator

Enter current assets and liabilities to instantly calculate working capital, current ratio, and quick ratio.

Updated June 2026 · Editorial standards

Balance Sheet Items

$
$
$
$
Working Capital
$300,000
Current Ratio
2.50x
Quick Ratio
2.00x

Working capital of $300,000. Current ratio 2.50x (healthy). Quick ratio 2.00x.Current ratio above 2x is comfortable; below 1x means current liabilities exceed current assets — a liquidity risk. Quick ratio strips inventory, showing ability to meet obligations with near-cash assets.

By the KalkWise Editorial Team Reviewed for accuracy Updated June 2026

What is the working capital calculator — liquidity ratios?

In short

Working capital = current assets − current liabilities. A current ratio above 1.5 and quick ratio above 1.0 indicate healthy liquidity. Negative working capital (current ratio < 1) can signal financial distress for most businesses.

Calculates working capital, current ratio, quick ratio, and cash ratio to assess short-term liquidity.

How to use this calculator

  1. 1Enter current assets (cash, A/R, inventory, prepaid expenses).
  2. 2Enter current liabilities (A/P, short-term debt, accrued expenses).
  3. 3Enter inventory and accounts receivable separately for quick and cash ratios.

The formula

working capital=current assets−current liabilities
current ratio=current assetscurrent liabilities
quick ratio=current assets−inventorycurrent liabilities
Working Capital = CA − CL; Current Ratio = CA ÷ CL; Quick Ratio = (CA − I) ÷ CL; Cash Ratio = (CA − I − AR) ÷ CL
CA
— Current Assets
CL
— Current Liabilities
I
— Inventory
AR
— Accounts Receivable

Worked example

The scenario

Current assets $500K, current liabilities $200K, inventory $100K, A/R $150K.

gives

The result

Working capital = $300K. Current ratio = 2.5x. Quick ratio = 2.0x. Cash ratio = 1.25x.

Common use cases

  • Assess ability to meet short-term obligations.
  • Evaluate before applying for business credit.
  • Monitor operational efficiency trends.
  • Compare to industry peers during due diligence.

Limitations & assumptions

  • Does not distinguish between liquid and illiquid current assets.
  • Quick ratio may overstate liquidity if A/R has poor collectability.
  • Some businesses (e.g., Amazon) run negative working capital intentionally and healthily.
  • Industry norms vary — retail often has lower current ratios than manufacturing.

Frequently asked questions

Not always. Large retailers like Walmart and Amazon collect cash from customers before paying suppliers, creating intentional negative working capital. For most businesses, however, negative working capital signals liquidity risk.

Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.