Formula: Working Capital = Current Assets − Current Liabilities

With current assets of 350,000 and current liabilities of 220,000, working capital equals 130,000. The current ratio (current assets ÷ current liabilities) of about 1.59 means the business has roughly 1.59 in short-term assets for every 1 in short-term liabilities.

This tool is provided for general informational purposes only and does not constitute financial advice. Verify results independently before making financial decisions.