Working Capital Ratio Calculator
Calculate net working capital and the working capital ratio. Assess whether your business has enough short-term resources to fund day-to-day operations.
For planning purposes only — confirm with your accountant or financial adviser.
1) Inputs & 12-Month Projection
Monthly Projection (up to 12)
| Month | Current Assets | Current Liabilities | Working Capital | Current Ratio | Quick Ratio |
|---|
2) Charts
Current Assets vs Current Liabilities (12 months)
Current Ratio over Time
What this means for you
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What this calculator does
This tool calculates three core liquidity metrics from your current balance sheet: Working Capital (the absolute surplus of current assets over current liabilities), Current Ratio (a ratio of current assets to current liabilities), and Quick Ratio (a stricter measure that excludes inventory from the asset side). It also projects how these metrics change month by month as your assets and liabilities grow.
Who it's for: Business owners preparing for a bank review, finance managers monitoring short-term liquidity health, accountants benchmarking a client's balance sheet, and founders stress-testing whether the business can meet its obligations.
When to use it: At any point where you need a snapshot of whether your business can pay its short-term bills. Particularly important before applying for credit, entering a high-growth period, or navigating a difficult trading environment.
When not to use it: Liquidity ratios are snapshots — they do not capture cash timing within a month. A business can show a healthy current ratio in month-end accounts but still face a cash gap mid-month if large payments are due before collections arrive. Use cash flow forecasting alongside these ratios.
How the calculation works
The three metrics are calculated from the balance sheet components you enter: