01
Formula
Working capital = current assets − current liabilities.
Current ratio = current assets ÷ current liabilities. The working capital calculator needs liabilities above zero so the ratio is defined.
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Working capital calculator from the balance sheet
This working capital calculator subtracts current liabilities from current assets and divides assets by liabilities for the current ratio. Dengaro arranges equipment financing. The result is not a loan amount and not an approval.
Working capital
$35,000.00
Current ratio1.78
Current assets$80,000.00
Current liabilities$45,000.00
Educational illustration only. Dengaro is a brand of Funding Routes LLC and is not the lender. Dengaro arranges equipment financing. Any rate or figure is an assumption you set, not a quote.
How it works
Working capital is the difference. The ratio is the quotient.
Eighty thousand dollars of current assets and $45,000 of current liabilities is $35,000 of working capital and a current ratio of 1.78. Current means due or available inside a year, on the definitions in your books. Cash, receivables, and inventory are typical assets. Payables and the current portion of debt are typical liabilities. This page does not classify an account for you. A positive result is not cash you can spend, because inventory and receivables are not cash. Dengaro arranges equipment financing and is not the lender. This difference is not sent as a loan amount.
02
Example
$80,000 of current assets and $45,000 of current liabilities.
Working capital is $35,000. The current ratio is 1.78. Change either input and both numbers move. Neither number is a credit decision.
03
Limit
A ratio is not a loan.
Lenders, if any, read the accounts behind the totals. This page only subtracts and divides. Dengaro arranges equipment financing.
04
Equipment
A machine is not working capital on this form.
If the business is buying equipment, use the equipment application. The working-capital difference is not sent as the amount.
Important questions
Know what to expect.
Is this a financing offer?+
No. This working capital calculator is balance-sheet arithmetic. Dengaro arranges equipment financing.
Is inventory the same as cash?+
No. It sits in current assets, so it raises working capital, but it is not money in the bank. The cash flow calculator is the cash question.
What ratio is healthy?+
This page does not say. A ratio depends on the business. Dengaro does not set a target and does not approve credit from it.
Can liabilities be zero?+
The ratio would be undefined. Enter the current liabilities you actually have. If they are truly zero, the difference is just the assets and you do not need a ratio.
Equipment financing