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Working Capital Calculator
Current Assets − Current Liabilities — operational liquidity.
Enter values to see your result
Frequently asked questions
What is working capital?
Short-term operational liquidity. Money available to cover next 12 months' obligations. Too little = insolvency risk. Too much = idle capital.
Why does WC matter?
Business can be profitable on paper but fail from liquidity crunch. Many growth companies go bust expanding faster than working capital allows.
Negative WC — always bad?
Usually yes. Exception: successful retailers (Walmart) — collect cash from customers before paying suppliers. Creates float.
Working capital loan?
Short-term finance covering gap between receivables and payables. Usually OD (overdraft) or cash credit — pay interest only on used amount.