Working Capital Calculator
Instantly calculate your business working capital and assess your financial health.
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Working Capital Formula and Business Insights
Working capital = Current Assets − Current Liabilities. This simple formula helps you understand your business's liquidity and ability to meet short-term obligations. Use this tool to monitor and improve your financial health.
- 1Enter Current Assets & LiabilitiesInput your business's current assets and liabilities for instant results.
- 2Review Your Working CapitalSee if your business is in a healthy liquidity position.
- 3Take ActionUse insights to plan, invest, or seek financing as needed.
Why Working Capital Matters in Financial Planning
Working capital is a key indicator of business health. It affects your ability to pay bills, invest in growth, and weather financial challenges. Positive working capital means flexibility; negative may signal risk.
- Short-Term LiquidityEnsures you can meet obligations and avoid cash crunches.
- Business OperationsSupports inventory, payroll, and day-to-day expenses.
- Financial PlanningHelps you plan for growth, investment, and financing.
Related Tools
Operating Margin Calculator
Operating margin affects how efficiently working capital is used.
Net Profit Margin Calculator
Profitability metrics complement working capital insights.
EBITDA Calculator
EBITDA reflects cash flow that influences working capital health.
Payback Period Calculator
Liquidity from working capital can shorten payback duration.
Budget Planner Tool
Useful for managing expenses to maintain a positive working capital.
Cost of Goods Sold Calculator
COGS impacts current liabilities and overall working capital.