Working Capital Calculator
The quick ratio is the honest one.
Working capital
$144,000
current ratio 2.29
The current ratio of 2.29 looks comfortable and the quick ratio of 0.63 is the honest one — it excludes stock, which cannot pay a supplier this week. For a stock-heavy business the gap between them is the whole risk.
How the Working Capital Calculator works
The current ratio includes stock, which cannot pay a supplier this week. The quick ratio excludes it, and for a stock-heavy business the gap between the two is the entire liquidity risk.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What is working capital?
Current assets less current liabilities — what would be left if you converted everything short-term to cash and settled everything short-term you owe.
What is a healthy current ratio?
Above 1.5 is a common rule of thumb, though it depends heavily on how quickly stock turns. A retailer with fast turns can operate safely at a lower ratio than one with slow-moving stock.
Why does the quick ratio matter more?
Because stock is not cash and cannot be made into cash on demand without discounting it. In a squeeze, the quick ratio is what you actually have.
How do I improve working capital?
Longer supplier terms, faster collections, and less stock. The last one is usually the largest and the most resisted.