About this tool
Working Capital & Liquidity Ratio Calculator is a free, in-browser tool that measures a company's short-term financial health from three balance-sheet figures. Enter current assets, current liabilities and inventory and the results appear instantly, computed locally with nothing uploaded.
Working capital = current assets − current liabilities, the cushion of short-term resources over short-term obligations. The current ratio = current assets ÷ current liabilities shows how many times over you can cover what is due within a year. The quick ratio, or acid test, = (current assets − inventory) ÷ current liabilities strips out inventory — the hardest current asset to convert to cash — for a stricter view of liquidity.
Use it to gauge solvency before a loan application or supplier negotiation. As a rule of thumb a current ratio of 2 or more is strong, 1 to 2 is acceptable, and below 1 signals that current liabilities exceed current assets — a liquidity risk the health note flags for you.