Tool
Working Capital Calculator
Calculate net working capital, current ratio, quick ratio, and short-term liquidity pressure from cash, receivables, inventory, and current liabilities.
How to use working capital
Working capital shows whether short-term assets can cover short-term liabilities. A business can look profitable while still running into cash pressure if receivables are slow, current liabilities are due soon, or cash reserves are thin.
Use this with the cash flow forecast, DSO calculator, AR turnover calculator, and invoice tracker before deciding whether to chase collections, negotiate terms, discount invoices, or use financing.