Below is a *working capital calculator*. See how much a company has to immediately invest in its business and growth by netting our current assets and current liabilities.

## Working Capital Calculator

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## What is a company's working capital?

*Working capital* is the short-term funds a company can use to fund its day-to-day operations or dedicate to growth. It is computed by netting out the current assets and current liabilities on a company's balance sheet. It's closely linked to the current ratio or working capital ratio, which shows the proportion of current assets and liabilities.

Negative working capital is when current liabilities are *higher* than current assets. It's not necessarily a bad situation portending doom – companies that turn over inventory extremely quickly and have good payment terms on inputs can show persistent negative working capital.

### Working Capital Formula

The working capital formula is:

working\ capital=current\ assets-current\ liabilities

*Where:*

**Current Assets**– Short-term assets listed on the company's balance sheet**Current Liabilities**– Short-term liabilities listed on the balance sheet

## Other Liquidity Calculators

Liquidity ratios and calculations help estimate how a company can deal with its short term debt and liabilities. See other tools here: