Working Capital Calculator
Find out whether your business can cover what it owes with what it owns in the next twelve months. Enter totals for a quick read, break both sides into line items for accuracy, or check how efficiently your working capital is turning into revenue.
Reading Your Working Capital Ratio
General guidance only — a comfortable ratio varies by industry and business model, and the trend across several months tells you more than any single snapshot.
| Ratio | Zone | What it usually signals |
|---|---|---|
| Below 1.0 | Warning | Current liabilities exceed current assets. Worth checking whether cash coming in lines up with bills going out. |
| 1.0 to 2.0 | Healthy | Short-term obligations are covered with a reasonable buffer, without cash sitting idle. |
| Above 2.0 | Comfortable, check for idle cash | Obligations are well covered, but a large cash pile or slow-moving stock could be doing more elsewhere in the business. |
One exception worth knowing: retail, e-commerce, and subscription businesses that collect payment from customers before paying suppliers can run safely with a ratio under 1, because the cash lands before the bills fall due. What matters most for those models is timing, not the raw number.
Frequently Asked Questions
Use Our Other Tools
Working capital is only one piece of the picture. These two calculators help you see the profitability side too.
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