Skip to main content
🏦Balance Sheet Formulas

Working Capital

Current Assets - Current Liabilities = Working Capital

What It Means

Can you pay your bills this year? Positive = yes. Negative = trouble.

Positive number means you can cover short-term obligations

Example

Current Assets:$150,000
Current Liabilities:$100,000

$150,000 - $100,000

Working Capital = $50,000

Healthy short-term financial position

Related Formulas

Want all 70+ formulas in one place?

← Back to Full Cheatsheet