How this calculator works
Subtract all current liabilities from all current assets. This includes cash and short-term financing, unlike operating working capital. The current ratio divides those same balances. The turnover modes use revenue and opening and closing net working capital, or the underlying current balances. Negative working capital is allowed; turnover needs a positive average.
Formula
Working capital = current assets - current liabilities. Current ratio = current assets / current liabilities. Average WC = (opening WC + closing WC) / 2. WC turnover = period revenue / average WC.
Worked example
Current assets of $150,000 and liabilities of $90,000 give $60,000 of working capital and a current ratio of 1.6667. Assets of $80,000 and liabilities of $100,000 instead give -$20,000 and a ratio of 0.8.
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Frequently asked questions
Is positive working capital enough to pay every bill?
Timing matters. Inventory may sell slowly and receivables may be overdue even when the total exceeds liabilities.
What happens with no current liabilities?
The dollar working capital remains defined. The current ratio is omitted because dividing by zero is undefined.
Can I solve for an opening or closing balance?
Use the turnover modes to recover a net balance. The focused working capital turnover page also recovers individual asset and liability balances.