Working Capital Calculator
Compute working capital, current ratio and quick ratio from balance sheet figures. Free India working capital calculator for SMEs and finance teams.
अपना परिणाम कैलकुलेट करें
अपने आँकड़े दर्ज करें। बदलाव के साथ अनुमान और चार्ट अपडेट होंगे।
बैलेंस शीट आइटम
- कार्यशील पूंजी
- ₹20,00,000
- वर्तमान अनुपात
- 1.67
- पर्याप्त
- त्वरित अनुपात
- 1.17
- स्वस्थ
आपके आँकड़ों का मतलब
You'd have ₹20,00,000 left after paying all short-term dues.
A current ratio of 1.67 means ₹1.67 of short-term assets for every ₹1 due within a year.
Even without selling inventory, you can cover short-term dues 1.17 times.
A quick ratio of 1 or more is a common rule of thumb for comfortable liquidity.
Reaching a current ratio of 2 needs ₹10,00,000 more in current assets.
Or cut short-term liabilities by ₹5,00,000; a current ratio of 2 is a widely used rule-of-thumb comfort level.
अपनी गणना समझें
Working capital is the difference between a company's current assets and current liabilities. It is the operational liquidity available to run day to day business: pay suppliers, meet payroll, fund inventory and absorb short term shocks. The working capital calculator on this page tells you the working capital amount, the current ratio and the quick ratio from your latest balance sheet. All three are standard inputs for credit assessments, supplier negotiations and internal liquidity planning.
एक नज़र में लाभ
Working capital in rupees
Current assets minus current liabilities, the simplest measure of operational liquidity. Negative working capital is a red flag for most non retail businesses.
Current ratio
Current assets divided by current liabilities. A ratio of 1.5 to 2 is considered healthy. Below 1 means current liabilities exceed current assets, which is typically a serious liquidity concern.
Quick ratio (acid test)
Current assets less inventory and prepaid expenses or other non-quick assets, divided by current liabilities. This excludes balances that are not readily available to pay obligations.
Useful for credit assessments
Banks and lenders look at all three ratios when assessing working capital loan applications. The calculator helps you check your numbers before applying so you can fix any obvious weakness.
Working Capital Calculator कैसे उपयोग करें
- 1
Enter current assets
Sum of cash, receivables, inventory, prepaid expenses and any other assets convertible to cash within 12 months. From the asset side of the balance sheet.
- 2
Enter current liabilities
Sum of trade payables, short term loans, accrued expenses, current portion of long term debt and any other obligations due within 12 months. From the liability side of the balance sheet.
- 3
Enter inventory separately
Enter inventory and prepaid expenses / other non-quick assets separately. Both are excluded from the quick ratio; current assets should still include them.
- 4
Read all three metrics
Working capital in rupees, current ratio and quick ratio. Compare each against industry norms and your own historical trend.
उदाहरण
Small manufacturer liquidity example
A small manufacturer's balance sheet shows ₹40,00,000 of current assets, of which ₹12,00,000 is inventory and ₹1,00,000 is prepaid expenses, against ₹25,00,000 of current liabilities. Working capital = ₹40,00,000 − ₹25,00,000 = ₹15,00,000. Current ratio = ₹40,00,000 ÷ ₹25,00,000 = 1.6. Quick ratio = (₹40,00,000 − ₹12,00,000 − ₹1,00,000) ÷ ₹25,00,000 = 1.08.
- Working capital
- ₹15,00,000
- Current ratio
- 1.60
- Quick ratio
- 1.08
Liquidity looks adequate, but nearly a third of current assets sit in stock. If inventory turned slower, the quick ratio would be the first number to slip below 1.
इसकी गणना कैसे होती है
Working capital = current assets − current liabilities. A negative figure is shown as is.
Current ratio = current assets ÷ current liabilities. Quick ratio = (current assets − inventory − prepaid expenses) ÷ current liabilities; prepaid expenses default to zero if you leave them blank.
When current liabilities are zero, neither ratio has a meaningful value, so both are shown as a dash instead of a number.
मान्यताएँ और सीमाएँ
- Inputs are balances at the same date, not annual flows.
- Quick assets equal current assets minus inventory and prepaid expenses / other non-quick assets.
- With no current liabilities, coverage ratios are not applicable and displayed as a dash, not zero.
- Health labels are illustrative benchmarks, not lender eligibility decisions.
अक्सर पूछे जाने वाले प्रश्न
What is a healthy working capital?
Positive working capital is the baseline for most non retail businesses. A current ratio of 1.5 to 2 is generally healthy. Some industries (modern retail, fast moving consumer brands) operate sustainably with negative working capital because suppliers extend long credit and customers pay quickly. Outside such structures, persistent negative working capital signals operational stress.
What is the difference between current ratio and quick ratio?
Current ratio includes all current assets. Quick ratio excludes inventory and entered prepaid expenses / other non-quick assets. Those balances may not readily become cash, so the quick ratio is a more conservative immediate-liquidity measure.
How do I improve my working capital?
Three main levers. Speed up collections from customers (offer early payment discounts, tighter credit terms, automated reminders). Slow down payments to suppliers (negotiate longer credit terms, but without damaging relationships). Reduce inventory (just in time procurement, faster turnover, eliminating slow movers). Each lever has trade offs that depend on your supplier and customer power dynamics.
What is negative working capital and is it always bad?
Negative working capital means current liabilities exceed current assets. For most businesses this is a liquidity warning. However, some business models (large retail chains, supermarket operators, low ticket consumer brands with online aggregators) sustain negative working capital because customers pay in cash or quickly while suppliers extend significant credit. In such cases, negative working capital actually reflects strong supplier power and is a competitive advantage.
How is working capital different from cash flow?
Working capital is a balance sheet snapshot at a point in time. Cash flow is a flow measure over a period. A business can have positive working capital but negative cash flow if operations are losing money. Conversely, a business can have low working capital but strong cash flow if operations generate cash quickly. Both metrics are useful and complementary.
Do banks lend against working capital?
Yes. Working capital loans are a major product category in Indian commercial banking. Banks typically lend up to 75 to 80 percent of receivables and 50 to 60 percent of inventory under cash credit (CC) and overdraft (OD) facilities. The calculator helps you assess your eligibility and the likely loan size before approaching the bank.
How often should I calculate working capital?
Monthly for most growing businesses. Quarterly is a minimum. Working capital can move quickly (large customer order, supplier prepayment, seasonal inventory build up), so a monthly cadence catches problems early. Many CFOs include the three ratios in the monthly management dashboard.