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Working Capital and Turnover
Calculate net current assets, the current ratio and revenue per average working capital.
- Formula & worked example
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Calculator inputs
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How to use this calculator
- Enter the known values in the units shown. Results update as you type.
- Where results are editable, change one to solve backwards. Lock a value to hold it fixed.
- 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 of 1,000 less liabilities of 500 give working capital of 500 and a current ratio of 2.
Working capital = current assets − current liabilities; turnover = revenue / average beginning and ending working capital.
Worked example
Enter these known values and leave the other values blank.
- Current assets
- 1000 USD
- Current liabilities
- 500 USD
- Revenues
- 2000 USD
- Beginning current assets
- 800 USD
- Beginning current liabilities
- 400 USD
- Ending current assets
- 1200 USD
- Ending current liabilities
- 600 USD
- Working capital
- 500 USD
- Working capital ratio
- 2
- Beginning working capital
- 400 USD
- Ending working capital
- 600 USD
- Average working capital
- 500 USD
- Working capital turnover ratio
- 4
Assumptions and limitations
- Use balance-sheet amounts for the same entity and reporting dates. Revenue must cover the interval between beginning and ending balances.
- Current liabilities and average working capital must be nonzero for their respective ratios. Negative working capital is a signed deficit, not a turnover recommendation.
- Enter all money amounts in one currency. The retained currency conversion menu uses captured historical conversion factors, not current exchange quotes.
- Clear an unknown editable field before solving an inverse; fixed selections and output-only fields cannot be inferred.
Common questions
What does this calculation assume?
Use balance-sheet amounts for the same entity and reporting dates. Revenue must cover the interval between beginning and ending balances.
Are these current exchange rates?
No. Use one currency consistently; currency menu factors are a historical snapshot.
References
Add independently reviewed discrete-count, denominator and bounded-probability requirements.
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