Business calculators
Working capital, current ratio & quick ratio calculator.
Enter the current items from your balance sheet and get all three liquidity figures at once, ready to print for a lender.
Working capital = current assets − current liabilities. Current ratio = current assets ÷ current liabilities. Quick ratio = (cash + accounts receivable) ÷ current liabilities.
Balance sheet items
Result
Worked example
A shop has cash of $30,000, receivables of $50,000 and inventory of $40,000, so current assets are $120,000. It owes $35,000 to suppliers, $15,000 in short-term debt and $10,000 in other current items, so current liabilities are $60,000. Working capital is $120,000 − $60,000 = $60,000. Current ratio is 120,000 ÷ 60,000 = 2.00. Quick assets are $30,000 + $50,000 = $80,000, so the quick ratio is 80,000 ÷ 60,000 = 1.33.
Formulas and sources
As of 30 September 2026, the Business Development Bank of Canada glossary states: “Working capital = current assets—current liabilities” (working capital); “Current ratio = current assets / current liabilities” (current ratio); and for the acid-test (quick) ratio, quick assets of cash + accounts receivable divided by current liabilities (acid-test ratio). Other quick-ratio definitions also count marketable securities; BDC lists only cash and receivables, so this tool follows BDC. If you hold securities your lender counts as quick, add them to cash.
Reading the numbers
BDC says “most businesses work to maintain a current ratio between 1.70 and 2.0”, and describes a 1:1 acid-test ratio as ideal. Those are BDC’s statements, not a rule: what is normal varies by industry and lender, and this page does not claim any industry average.
FAQ
What is a good current ratio?
BDC cites 1.70 to 2.0 as the range most businesses aim for. Ask your lender what they expect.
Why does the quick ratio leave out inventory?
Inventory must be sold before it becomes cash, so BDC’s quick assets are cash plus receivables only.
Can working capital be negative?
Yes. When current liabilities exceed current assets, working capital is negative and the current ratio is below 1.
Limits
This is a math tool using the figures you enter, not accounting or credit advice. The FDIC Money Smart for Small Business curriculum offers free financial-management training modules if you want background on cash flow; its landing page does not itself define these ratios.