Calculate your net working capital, current ratio, and quick ratio. Assess your business's short-term liquidity and ability to cover upcoming obligations.
Current Assets
Current Liabilities
Net Working Capital
$75,000.00
Current Ratio
2.50x
Quick Ratio
1.60x
Strong liquidity — ample assets to cover short-term obligations.
+$75,000
Positive working capital
Excess
Consider investing excess capital
Cash Ratio
1.00x
Healthy cash position
Inventory to Working Capital
53%
Heavy inventory reliance
Defensive Interval
584d
Days liquid assets cover daily obligations
Working capital is a fundamental measure of business liquidity and operational efficiency. It tells you whether a company has enough short-term assets to cover its short-term liabilities. The current ratio and quick ratio provide additional perspective — the current ratio includes all current assets, while the quick ratio strips out inventory and other less-liquid assets for a more conservative view. Monitoring working capital helps businesses avoid cash crunches, plan for growth, and maintain healthy supplier relationships.
Working capital is the difference between current assets and current liabilities. It represents the short-term liquidity available to fund day-to-day operations. Positive working capital means the business can cover its short-term debts.
The current ratio is current assets divided by current liabilities. A ratio above 1.0 means assets exceed liabilities. Generally, a ratio between 1.5 and 2.0 is considered healthy, though it varies by industry.
The quick ratio (acid test) measures liquidity using only the most liquid assets — cash and accounts receivable — excluding inventory. It provides a stricter test of a company's ability to meet short-term obligations quickly.
Yes. Negative working capital means current liabilities exceed current assets. While this can indicate financial distress, some businesses (like grocery chains) operate with negative working capital by design because they collect cash before paying suppliers.
Quick Ratio Calculator
Calculate your business quick ratio (acid test) to assess short-term liquidity. See if your liquid assets can cover current liabilities without relying on inventory sales.
Cash Flow Calculator
Calculate your net cash flow from operating, investing, and financing activities. See your free cash flow and understand where cash is coming from and going.