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Working Capital Calculator
Measure a company's short-term liquidity buffer. Enter any US-listed ticker to pull current assets and liabilities from live balance sheet data — or input values manually — then see the working capital amount with a tier verdict and sector context.
Enter a ticker to calculate Working Capital
Try AAPL, WMT, or any US-listed company. The calculator fetches live balance sheet data and computes working capital with a liquidity tier verdict instantly.
RELATED TOOL
Screen stocks by working capital →Mid-cap stocks ranked by net working capital as a percent of revenue — five liquidity tiers.
What Is Working Capital?
Working capital is the financial buffer between what a company owns in the short term and what it owes in the short term. The formula is deliberately simple:
| Term | What it means |
|---|---|
| Current Assets | Cash, receivables, inventory — anything convertible to cash within 12 months |
| − Current Liabilities | Payables, short-term debt, accrued expenses — obligations due within 12 months |
| = Working Capital | The net liquidity buffer — positive means a surplus, negative means a shortfall |
Positive working capital is generally a sign of financial health: the company can meet its near-term obligations without selling long-term assets or taking on new debt. But the trend matters more than any single reading — working capital that is shrinking quarter over quarter can be an early warning signal even when it is still technically positive. Negative working capital is not automatically catastrophic: some well-run businesses (Walmart, Amazon) intentionally operate with negative working capital because their suppliers extend credit while customers pay cash immediately.
How to Use This Calculator
Enter a ticker or go manual
Type any US-listed ticker to auto-populate current assets and current liabilities from live balance sheet filings — or switch to Manual to enter your own numbers.
Read the dollar amount
The calculator shows working capital in dollars — a large positive number means a substantial buffer, a negative number means current liabilities exceed current assets.
Check the tier verdict
The verdict — Strong, Healthy, Thin, or Negative — gives quick context on whether the buffer is substantial, adequate, slim, or worrying.
Track the trend
Use the current ratio screener to compare across peers. A declining working capital trend over several quarters is often more informative than the level alone.
Key Concepts
Working capital vs. the current ratio
Working capital is an absolute dollar amount — the size of the buffer. The current ratio is the proportional measure: current assets divided by current liabilities. A company with $5B of working capital but a 1.1× current ratio has a huge buffer but relatively thin coverage. Both metrics are useful — use them together.
The quick ratio strips inventory
Inventory is counted in current assets but may not be convertible to cash quickly, especially in a downturn. The quick ratio (also called the acid-test) removes inventory from the numerator, giving a more conservative view of liquidity that many analysts prefer for manufacturing-heavy companies.
Negative WC is not always bad
Subscription businesses, large retailers, and platforms that collect cash before delivering goods often run negative working capital by design. Customers pay upfront; suppliers are paid on net-30 or net-60 terms. This creates a self-funding growth engine — negative working capital can actually signal pricing power and operating leverage.
Working capital in the cash flow cycle
Working capital is tied to the cash conversion cycle (CCC): how long it takes a dollar spent on inventory to come back as cash from a customer. A short CCC means working capital requirements are low; a long CCC means a company needs more working capital to fund the gap between paying suppliers and collecting from customers.
Frequently Asked Questions
What is working capital?
Working capital is current assets minus current liabilities. It measures the short-term liquidity buffer — how much financial cushion a company has to cover its near-term obligations from its current assets.
How do you calculate working capital?
Working Capital = Current Assets − Current Liabilities. Both figures come from the balance sheet. Current assets include cash, receivables, and inventory. Current liabilities include payables, short-term debt, and accrued expenses.
What is a good working capital number?
It depends on the industry. Capital-light tech companies often run thin or negative WC (customers prepay, little inventory). Manufacturers need larger positive WC buffers. The trend over time matters more than any single reading.
What is the difference between working capital and the current ratio?
Working capital is an absolute dollar amount (current assets minus current liabilities). The current ratio is relative (current assets divided by current liabilities). Working capital shows the size of the buffer; the current ratio shows its proportional adequacy.
FINISHED THE NUMBERS?
A calculator gives you one number. The report gives you the argument.
Liquidity in context — whether working capital is tightening, what the balance sheet signals about near-term risk, and how the company's cash position compares to peers — on any public company.
See a sample report →