Business
Working Capital
Current assets minus current liabilities.
Inputs
Current assets
Total: $300,000.00
$
$
$
Current liabilities
Total: $130,000.00
$
$
$
$
Used for WC-to-sales and DSO. From P&L top line.
Results
Working capital
$170,000.00
Current assets − current liabilities
Current ratio
2.31
CA ÷ CL (target ≥ 1.5)
Quick ratio (acid test)
1.58
(CA − inventory) ÷ CL
Cash ratio
0.65
Cash ÷ CL
WC to sales
14.2%
WC ÷ annual sales
Days sales outstanding
37 days
(AR ÷ sales) × 365
Liquidity rating
Strong
Total current assets
$300,000.00
Total current liabilities
$130,000.00
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