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//// Financial · Liquidity

Working Capital Calculator

The current ratio that most freelancers ignore. Track liquidity, runway, and what it takes to stay solvent when a client pays late.

401(k) Limit 2024$23,000
Roth IRA Limit$7,000
S&P 500 Avg Return~10%/yr

Current Assets

Current Liabilities

Operations

Strong — Ratio: 2.78×

Excellent liquidity. Consider putting excess cash to work rather than letting it sit idle.

Working Capital Ratio

Distressed <1.02.78×Strong >2.0
0×1.01.52.03.0+
Working Capital
$20,500
Assets − Liabilities
Days of Runway
137 days
At current burn rate
Collection Time
25 days
Avg invoice to cash
Ratio
2.78×
At or above healthy

Assets — $32,000

Cash$12,000 (38%)
Accounts Receivable$18,000 (56%)
Prepaid Expenses$2,000 (6%)

Liabilities — $11,500

Accounts Payable$3,500 (30%)
Short-Term Debt$1,200 (10%)
Accrued Taxes$6,800 (59%)

Recommendations

mediumTax liabilities are a large share of your current obligations. Set aside 25-30% of each payment received into a separate tax account.
lowStrong liquidity position. Consider deploying excess cash into a high-yield business account or investing in growth.

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