BizJourney
Home › Formulas › Working capital (amount)

How to calculate Working capital (amount)

The Working capital (amount) formula, with plain worked examples you can check yourself.

Working capital (amount) = CA − CL

Worked examples

CA = 700 · CL = 500Working capital (amount) = 200
CA = 400 · CL = 300Working capital (amount) = 100
CA = 600 · CL = 300Working capital (amount) = 300

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Cash & Liquidity.

Related terms

Working capitalAPICash flowLiquidityOverdraft

Practice Working capital (amount) with real numbers

Quizzes, a CEO simulator, a real estate tycoon game and startup tools. Free to start, in 7 languages.

Play BizJourney free →