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Revenue to Average Working Capital Calculator

Compare revenue with average current assets less average current liabilities.

  • Formula & worked example
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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Edit a calculated value to solve backwards, or lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

Current assets averaging 50,000 less current liabilities averaging 20,000 give average working capital of 30,000. Revenue of 150,000 produces turnover of 5 times.

Average working capital = average current assets − average current liabilities; turnover = revenue ÷ average working capital

Worked example

Enter these known values and leave the other values blank.

Opening current assets
40000 USD
Closing current assets
60000 USD
Opening current liabilities
10000 USD
Closing current liabilities
30000 USD
Revenue
150000 USD
Average current assets
50000 USD
Average current liabilities
20000 USD
Average working capital
30000 USD
Working capital turnover
5 x

Assumptions and limitations

  • No. A very small denominator can create a large ratio without strong operating performance. Zero working capital makes the ratio undefined; negative working capital needs business-specific interpretation.
  • Use consistent periods, currency and accounting definitions. The result follows the stated formula and the figures you supply.

Common questions

Is a higher ratio always better?

No. A very small denominator can create a large ratio without strong operating performance. Zero working capital makes the ratio undefined; negative working capital needs business-specific interpretation.

References

The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.

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