Calculator Inputs
Calculation History
| Date | Current Assets | Current Liabilities | Working Capital | Current Ratio | Quick Ratio | Contract Liquidity Net |
|---|---|---|---|---|---|---|
| No calculations yet. Submit the form to create a record. | ||||||
Example Data Table
This sample mirrors common contract documentation fields for a mid-size project portfolio.
| Item | Amount | Document Reference |
|---|---|---|
| Cash & Bank | 25,000.00 | Bank statement |
| Trade Accounts Receivable | 60,000.00 | AR aging |
| Retainage Receivable | 15,000.00 | Progress billing schedule |
| Unbilled Revenue | 8,000.00 | WIP report |
| Inventory | 20,000.00 | Inventory listing |
| Trade Accounts Payable | 28,000.00 | AP aging |
| Accrued Expenses | 9,000.00 | Accruals worksheet |
| Deferred Revenue | 6,000.00 | Customer advances ledger |
Formula Used
- Net Accounts Receivable = Trade AR − (Trade AR × Allowance %)
- Adjusted Inventory = Inventory × (1 − Inventory Haircut %)
- Current Assets = Cash + Securities + Net AR + Retainage Recv + Unbilled + Adjusted Inventory + Prepaids + Other Assets
- Current Liabilities = AP + Retainage Pay + Accrued + Short-Term Debt + Deferred + Taxes + Other Liabilities
- Working Capital = Current Assets − Current Liabilities
- Current Ratio = Current Assets ÷ Current Liabilities
- Quick Ratio = (Cash + Securities + Net AR + Retainage Recv + Unbilled) ÷ Current Liabilities
- Contract Liquidity Net = (Retainage Recv + Unbilled) − (Retainage Pay + Deferred)
Use the include toggles to align treatment with your contract terms and classifications.
How to Use This Calculator
- Collect supporting documents: AR/AP aging, WIP, retainage schedules, and advance billing records.
- Enter amounts into the relevant fields and apply conservative policies (allowance and inventory haircut).
- Choose whether to include unbilled, deferred, and retainage based on your accounting treatment.
- Press Calculate Working Capital to display results above the form.
- Use Download CSV or Download PDF to share a clean summary.
Contract-Aware Working Capital Insights
Working capital as a contract readiness signal
In contract-heavy operations, working capital is more than a balance-sheet line; it is a readiness signal. Procurement reviews, performance bonds, and client onboarding often expect evidence that near-term obligations can be met. By pairing current assets and current liabilities with the underlying files, you can show how liquidity connects to signed terms, billing rights, and payment timing. This calculator turns those document-backed figures into a consistent snapshot for internal approvals.
Document-driven inputs that move the result
Trade receivables typically trace to invoices, acceptance certificates, and aging schedules; the allowance setting documents how much is expected to be collectible. Retainage receivable and payable should match contract clauses and subcontract agreements, because a small change in retainage can materially shift current assets and liabilities. Unbilled revenue is most defensible when supported by work-in-progress reports, milestone logs, and evidence of enforceable payment rights. Deferred revenue should align with advance billing records and performance obligations in the file.
Defensible policies: allowance and inventory haircut
Contract files rarely move in perfect alignment with cash. A conservative allowance on receivables helps bridge the gap between invoicing and collection, especially when disputes or change orders are present. The inventory haircut provides a liquidity lens: inventory may be saleable, but not always quickly convertible at full value. Recording these policies inside the calculation makes assumptions explicit, repeatable, and easier to review during sign-off.
Ratios for approvals, limits, and monitoring
Working capital shows the dollar cushion, while the current ratio highlights proportional coverage of current liabilities. The quick ratio removes slower items, supporting a stricter view of near-term capacity. If current liabilities are very low, the calculator displays ratios carefully to avoid misleading division-by-zero results. Use the contract liquidity net metric to spotlight timing items (retainage, unbilled, and deferred) that frequently drive negotiations and payment schedules.
Export-ready summaries for reviewers and auditors
Teams often need the same story told to multiple audiences: finance, legal, project controls, and external stakeholders. CSV exports support trend analysis across calculations, while PDF exports package a clean summary for emails, meeting minutes, or filing. Keeping a short session history provides continuity across revisions, helping you compare scenarios when terms, classifications, or documentation change.
FAQs
1) What is working capital in this calculator?
It is current assets minus current liabilities, using document-supported line items. Optional policies adjust receivables and inventory to produce a conservative liquidity view.
2) Why would I exclude unbilled revenue?
Exclude it when billing rights are uncertain, milestones are not accepted, or documentation is incomplete. Including it is strongest when the file shows enforceable payment entitlement.
3) How should I treat retainage?
Match your contract clauses and subcontract terms. Include retainage when it is classified as current and supported by schedules; exclude it if policy treats it as non-current or contingent.
4) What do allowance and haircut percentages do?
Allowance reduces receivables to reflect expected non-collection. Inventory haircut reduces inventory to a more liquid estimate. Both document assumptions so reviewers can understand the basis.
5) Why is the quick ratio useful?
It focuses on faster-moving assets by excluding inventory and prepaids. This supports stricter approval reviews where only near-cash resources should be counted.
6) What’s included in the exports?
CSV exports your session history table for analysis. PDF exports the visible summary (when available) plus the full history table, creating a portable record for sharing and filing.