How do you calculate working capital?

Answer by  dracoart1 (7)

To find how much working capital a company has all of the liquid assets cash, marketable securities, accounts receivable and current inventory need to be totaled. You then add up the total current liabilities: accounts payable, current liabilities due in less than one year, and accrued expenses. Subtract total current liabilities from total current assets to get working capital.

Answer by  Freshman (22)

From what I recall, there is a formula under generally acccepted account princiles (known is the United States as (GAAP). The formula is Short term assets minus short term liabilities