Working Capital Calculator (Current, Quick and Cash Ratios)
Enter current assets, inventory, cash and current liabilities.
Your numbers
Your results
Working Capital Calculator (Current, Quick and Cash Ratios) by TheCalcTools
How the Working Capital Calculator (Current, Quick and Cash Ratios) works
Working capital is the cushion of short-term assets over short-term debts. The current ratio divides them; the quick ratio leaves out inventory, which may be slow to sell; the cash ratio counts only cash.
What is healthy depends on the industry: supermarkets run low ratios because they sell stock before paying suppliers.
The formula
Worked example
Using the default values shown in the calculator:
| Current assets | $850000 |
|---|---|
| Inventory (included in current assets) | $300000 |
| Cash and equivalents | $120000 |
| Current liabilities | $500000 |
- 850,000 − 500,000 = $350,000 working capital.
- Current ratio 1.70, quick ratio 1.10.
Result:
| Working capital | $350,000 |
|---|---|
| Current ratio | 1.70 |
| Quick ratio | 1.10 |
| Cash ratio | 0.24 |
| Liquidity | Strong |
Frequently asked questions
Is a higher current ratio always better?
Not always. Very high ratios can mean idle cash or slow-moving stock.
Sources and further reading
- Investor.gov (SEC): Beginners' guide to financial statements
- Wikipedia: Working capital
- Wikipedia: Quick ratio
Related calculators
More in Business & Marketing · All calculators
This calculator gives estimates for information only. Check important results independently before you rely on them. See our disclaimer.