Subtract current liabilities from current assets to get the working capital funding day-to-day trading.
The result is the signed sum of its components: positive items are added and deductions subtracted. Expressing it as a share of the positive components shows how much of the gross figure survives to the bottom line. Working the balance sheet up from its components makes clear which line is moving it, which a single headline number hides.
Working Capital
Working Capital = Current assets − Current liabilities
Working Capital = Current assets − Current liabilities The result is the signed sum of its components: positive items are added and deductions subtracted. Expressing it as a share of the positive components shows how much of the gross figure survives to the bottom line.
Working the balance sheet up from its components makes clear which line is moving it, which a single headline number hides.
This calculator takes 2 inputs: Current assets, Current liabilities. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.