Keystone · Working Capital & Trade
Working Capital Calculator
Measure your liquidity position and simulate how changes in receivables, inventory and payables release or absorb cash.
In short: Net working capital equals current assets minus current liabilities. A positive result means short-term assets cover short-term obligations; the current and quick ratios express the same coverage as multiples.
Balance sheet inputs
Scenario: release cash
Net working capital
₹60.00 L
Current ratio
1.63×
Quick ratio
1.05×
Quick ratio uses cash plus receivables; inventory and other current assets are excluded (simplified definition).
Liquidity interpretation
Current assets cover short-term obligations with a reasonable buffer, within a commonly used comfort range.
- Current assets
- ₹1,55,00,000
- Current liabilities
- ₹95,00,000
- Net working capital
- ₹60,00,000
Scenario result
Approximate cash impact: ₹19,00,000 — scenario net working capital ₹41,00,000, current ratio 1.41×.
Cash release is estimated as the reduction in receivables and inventory plus the increase in payables, assuming balances convert to cash at book value.
Worked example
With ₹80 lakh receivables, ₹50 lakh inventory, ₹20 lakh cash, ₹5 lakh other current assets and ₹95 lakh of current liabilities, NWC is ₹60 lakh and the current ratio is 1.63×.
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Explore working capital financing options
Estimates are indicative. A Keystone advisor can review your specific position.
What is a good current ratio?
Many lenders look for roughly 1.2–2×, but appropriate levels vary by industry and business model. Very high ratios may indicate idle capital.
Does a lower CCC always mean better?
Generally less cash is tied up, but payables cannot stretch indefinitely without harming supplier terms.
This tool provides indicative estimates for education and planning only. It is not investment advice, a fairness opinion, a tax computation, a financing offer or a regulatory determination. Consult a qualified advisor before acting on any result.
Service: Trade Finance