Working Capital Calculator
Updated on 22 Oct 2026 · Checked by Aotob
You have $70,000 of working capital.
A current ratio of 1.88: $150,000 of current assets against $80,000 due within a year.
Working capital
$70,000
You can cover short-term bills without selling stock.
Show the working
Working capital = 150,000 − 80,000 = 70,000
Current ratio = 150,000 ÷ 80,000 = 1.88
Quick ratio = (40,000 + 60,000) ÷ 80,000 = 1.25
What the ratios usually mean
| Ratio | Yours | Comfortable |
|---|---|---|
| Current | 1.88 | 1.5 to 2 |
| Quick | 1.25 | 1 or more |
| Cash | 0.5 | 0.5 or more |
Questions people ask
What is working capital?
Current assets (cash, money owed to you, stock) minus current liabilities (bills, short-term debt) due within a year.
What is a good current ratio?
Between about 1.5 and 2. Under 1 means bills due soon are bigger than what you can turn into cash.
What is the quick ratio?
Like the current ratio but without stock, which can be slow to sell. 1 or more means you can pay near-term bills from cash and receivables.
Updated 22 Oct 2026Source: Standard business accounting formulasChecked by AotobSimplified; uses the figures you enter.Report an issue