Working Capital Calculator
Working capital, current ratio and operating cycle.
Enter your details
How it is calculated
Current ratio = Current assets ÷ Current liabilities; Quick ratio = (Current assets − Inventory) ÷ Current liabilities.
DSO = Receivables ÷ Sales × 365; DIO = Inventory ÷ COGS × 365; DPO = Payables ÷ COGS × 365; Cash conversion cycle = DIO + DSO − DPO.
Worked example
Current assets ₹9,50,000 (cash 1,50,000 + debtors 4,00,000 + stock 3,50,000 + other 50,000) and current liabilities ₹6,00,000: working capital ₹3,50,000, current ratio 1.58, quick ratio 1.00. With sales ₹36,50,000 and COGS ₹29,20,000: DSO 40 days, DIO 43.75 days, DPO 37.5 days, cash cycle 46.25 days.
About the Working Capital Calculator
Working capital, current ratio and operating cycle. This free business tool runs entirely in your browser: nothing you type is sent to a server, and you can save, print or download the result.
What you need to enter
You will be asked for cash and bank balance, trade receivables (debtors), inventory (stock), other current assets, trade payables (creditors), short-term borrowings and a few more details. Fields marked * are required. Every field shows a hint and the allowed range.
How to use it
- Fill in the inputs (sample values are pre-filled so you can see how it works).
- Press Calculate to see the result, breakdown and chart.
- Use Print, Download PDF or Share to keep the result, or come back to it from your saved history.
Who it helps
Salaried individuals, business owners, investors and professionals who want a quick, transparent estimate before they file, invest or plan. If your case has special facts, our team can review it - ask for a consultation.
Results are estimates based on the rules and rates described under "How it is calculated". Laws change and individual facts differ, so confirm with official sources or a qualified professional before acting. This is not tax, legal or investment advice.
Frequently asked questions
Is negative working capital always bad?
Not always; some businesses collect cash before paying suppliers. For most small businesses, though, it signals a funding gap that needs attention.
How can I improve working capital?
Collect receivables faster, hold less slow-moving stock, negotiate supplier credit terms and avoid funding long-term assets with short-term loans.
Need help beyond the calculator?
Talk to our tax and compliance team for advice based on your documents.