Cash Flow Management
Free toolWorking Capital Ratio Calculator
See whether you can cover what you owe this year. Your working capital ratio weighs current assets against current liabilities and shows where you land against the healthy range.
- 2-minute tool
- Free, no signup
What you get
What a good working capital ratio looks like
The working capital ratio, also called the current ratio, divides your current assets by your current liabilities. It answers one question. Can the cash, receivables, and inventory you can convert within a year cover what you owe within the same year. Most lenders look for a ratio between 1.5 and 2.0. Below 1.0 signals a liquidity gap. Well above 2.0 can mean cash or inventory that could fund growth instead.
- Your ratio, built from cash, receivables, inventory, payables, and short-term debt
- A plain read on where you land: strong, healthy, adequate, concerning, or critical
- No signup. The full calculator runs right here
The tool
Run your numbers
Working capital ratio
Can you cover what you owe this year?
Your working capital ratio weighs what you could turn into cash within a year against what you owe within a year. Enter your current assets and current liabilities to see where you stand.
Loading…
More cash flow management tools
Cash Conversion Cycle Calculator
Turn your inventory, receivables, and payables into your DIO, DSO, and DPO, then into the cash conversion cycle. It shows the days your cash is tied up between paying suppliers and collecting from customers.
3-minute tool · Free in your portalOpenCash Flow Forecast Calculator
Turn your starting cash, revenue, collection timing, and expenses into a month-by-month view of the next year, and see the capital it takes to never drop below zero.
5-minute tool · Free in your portalOpenSeasonal Cash Flow Planner
Turn your annual revenue, peak season, and collection days into a month-by-month view of your cash. You see the trough you have to survive and the bridge financing your peak requires.
4-minute tool · Free in your portalOpen