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Last Updated: September 30, 2022
On This Page:
- What is Working Capital?
- Working Capital Needs Calculator
- Working Capital Ratio
- Too Little Working Capital
- Too Much Working Capital
What is Working Capital?
Put simply, a business’s amount of working capital is its level of net liquidity in the short term – typically over the course of the next year. In other words, if you add up all of your company’s money (free cash flow) and anything that can become money very quickly – its cash, raw materials, accounts receivable, and any inventory that can quickly be sold – and subtract all of your current financial obligations, you have found your net working capital. Net working capital is a simple way of judging your business’s short-term financial health.
Small business owners can use this working capital calculator to find out their company’s current level of working capital. Simply plug in the necessary information about a company’s total current assets, and current liabilities, and find out if the business is currently covering its working capital needs.
Working Capital Needs Calculator
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KJE Computer Solutions, Inc.'s information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circ*mstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. More Information.
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