To calculate working capital, subtract a company’s current liabilities from its current assets. Working capital is the amount of capital that a company can readily use for day-to-day operations.

How Do You Calculate a Company’s Working Capital? To calculate a company’s working capital, simply subtract its current liabilities from its current assets. A positive result indicates that a ...

Investopedia / Yurle Villegas Working capital is calculated from the assets and liabilities on a corporate balance sheet, focusing on immediate debts and the most liquid assets. Calculating ...

How Do You Calculate Working Capital? Working capital is calculated by subtracting current liabilities from current assets. Both current assets and current liabilities can be found on a company's ...

But if you want a slightly more precise warning that you'll need a cash boost in the future, you can calculate your working capital ratio. Working capital ratio Working Capital Ratio = Current ...