Working Capital Calculator
This calculator helps finance and operations teams estimate working capital, liquidity ratios, and working capital needs using both balance-sheet and days-based approaches. It is intended for budgeting, cash-flow planning, and sensitivity checks.
Choose the method that matches your use case: 'Basic' for a snapshot from the balance sheet, 'Current ratio' to assess liquidity, or 'Working capital needs' to project cash tied up in operations using receivables, inventory and payables.
Governance
Record b76cff0462f4 • Reviewed by Fidamen Standards Committee
Simple balance-sheet working capital calculated as Current Assets minus Current Liabilities.
Inputs
Advanced inputs
Inputs for working capital needs
Results
Working capital
$50,000.00
| Output | Value | Unit |
|---|---|---|
| Working capital | $50,000.00 | USD |
Visualization
Methodology
Basic method: working capital = Current Assets − Current Liabilities. Use this for an immediate balance-sheet snapshot.
Current ratio: Current Assets ÷ Current Liabilities. Presents liquidity as a unitless ratio; values close to or below 1 indicate potential short-term liquidity pressure.
Needs method: two complementary estimates are presented. A balance-sheet-based estimate (AR + Inventory − AP) and a days-based estimate using daily sales multiplied by net operating days (DSO + DIO − DPO). Both metrics provide perspective; use the higher value for conservative planning.
Worked examples
Example 1 (basic): Current assets 150,000 and current liabilities 90,000 → Working capital = 60,000.
Example 2 (days-based): Annual sales 1,200,000, DSO 45, DIO 60, DPO 30, period 365 → daily sales = 3,287.67; days-based need ≈ 3,287.67 × (45 + 60 − 30) = 3,287.67 × 75 ≈ 246,575.
F.A.Q.
Which method should I use?
Use the basic method for a snapshot from your balance sheet. Use the current ratio to benchmark liquidity. Use the needs method when forecasting cash tied to operations; review both the balance-sheet and days-based estimates and reconcile differences with accounting.
What if current liabilities are zero?
Division by zero will make the current ratio undefined. The tool shows the calculation but users must avoid interpreting ratios when liabilities are zero or near-zero. Refer to your accounting team for context.
How accurate are results?
Outputs are estimates based on user inputs and standard arithmetic formulas. They do not replace audited financial statements, professional accounting advice, or institution-specific regulatory calculations. Validate inputs and document assumptions before making decisions.
What controls and standards support this tool?
This tool follows data handling and documentation best practices aligned with general technical frameworks. For security and process controls, consult NIST guidelines. For management systems and quality controls, consult ISO standards. For professional & technical engineering practices, see IEEE resources. For workplace safety and operational compliance, consult applicable OSHA guidance. The tool itself is an estimation aid and not a standards certification.
Sources & citations
- NIST — National Institute of Standards and Technology — https://www.nist.gov
- ISO — International Organization for Standardization — https://www.iso.org
- IEEE — Institute of Electrical and Electronics Engineers — https://www.ieee.org
- OSHA — Occupational Safety and Health Administration — https://www.osha.gov
- SEC — Non-GAAP Financial Measures Guidance — https://www.sec.gov/corpfin/non-gaap-financial-measures
- FASB — Financial Accounting Standards Board — https://www.fasb.org/
- CFA Institute — Global Investment Performance Standards (GIPS) — https://rpc.cfainstitute.org/gips-standards
Further resources
Versioning & Change Control
Audit record (versions, QA runs, reviewer sign-off, and evidence).
Record ID: b76cff0462f4What changed (latest)
v1.0.0 • 2025-11-10 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Public QA status
PASS — golden 25 + edge 120
Last run: 2026-01-23 • Run: golden-edge-2026-01-23
Versioning & Change Control
Audit record (versions, QA runs, reviewer sign-off, and evidence).
What changed (latest)
v1.0.0 • 2025-11-10 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Public QA status
PASS — golden 25 + edge 120
Last run: 2026-01-23 • Run: golden-edge-2026-01-23
Engine
v1.0.0
Data
Baseline (no external datasets)
Content
v1.0.0
UI
v1.0.0
Governance
Last updated: Nov 10, 2025
Reviewed by: Fidamen Standards Committee (Review board)
Credentials: Internal QA
Risk level: low
Reviewer profile (entity)
Fidamen Standards Committee
Review board
Internal QA
Entity ID: https://fidamen.com/reviewers/fidamen-standards-committee#person
Semantic versioning
- MAJOR: Calculation outputs can change for the same inputs (formula, rounding policy, assumptions).
- MINOR: New features or fields that do not change existing outputs for the same inputs.
- PATCH: Bug fixes, copy edits, or accessibility changes that do not change intended outputs except for previously incorrect cases.
Review protocol
- Verify formulas and unit definitions against primary standards or datasets.
- Run golden-case regression suite and edge-case suite.
- Record reviewer sign-off with credentials and scope.
- Document assumptions, limitations, and jurisdiction applicability.
Assumptions & limitations
- Uses exact unit definitions from the Fidamen conversion library.
- Internal calculations use double precision; display rounding follows the unit's configured decimal places.
- Not a substitute for calibrated instruments in regulated contexts.
- Jurisdiction-specific rules may require official guidance.
Change log
v1.0.0 • 2025-11-10 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Areas: engine, content, ui • Reviewer: Fidamen Standards Committee • Entry ID: c23808c4f795