How to use Business Liquidity Calculator
- Enter current assets and current liabilities.
- Enter inventory and prepayments included within those assets.
- Review working capital and the two liquidity ratios.
Example: Business Liquidity Calculator
Current assets 100000, inventory 20000, prepayments 5000, current liabilities 50000.
You add
Current assets 100000, inventory 20000, prepayments 5000, current liabilities 50000.
You get
Working capital is 50,000.00, current ratio is 2 and quick ratio is 1.5.
Supported inputs and limits
Quick assets equal current assets minus entered inventory and prepayments; their sum cannot exceed current assets. Zero liabilities leave ratios undefined while working capital remains calculable. This is balance-sheet arithmetic, not a solvency rating. Enter plain decimals with at most 64 characters, 25 digits and 12 fractional places. Monetary inputs are limited to 10^12. Very small or large nonzero amounts use scientific notation. Use one currency throughout; no exchange rates, taxes or fees are added unless you enter them.
Where your input is processed
This tool processes your input in this browser. Your text and files are not uploaded to UseFreeTools. Check this tool's limits for anything it may save on your device.
Three views of the same balances
Working capital is assets minus liabilities. Current ratio is assets divided by liabilities; quick ratio uses the entered quick assets as its numerator.
Questions about Business Liquidity Calculator
Which assets does the quick ratio exclude?
This version excludes the inventory and prepayments you enter. It does not classify individual asset accounts for you.
What if current liabilities are zero?
Working capital is still shown. The ratios have a zero denominator and are reported as undefined.
Does a ratio above one prove the business can pay?
No. Timing, collectability and operating conditions are outside these balance-sheet ratios.