Finance Tools
Farm Working Capital Calculator
Calculate farm working capital (current assets minus current liabilities) and key liquidity ratios like current ratio and working capital per acre/head to assess short-term financial health.
Working capital measures short-term financial health: current assets − current liabilities. This tool also shows current ratio and optional per-acre/per-head metrics for farm comparisons.
Checking, savings, cash on hand.
Unpaid invoices, receivables.
Stored crops, feed, inputs, supplies.
Prepaid expenses, short-term deposits.
Short-term operating note, revolving credit.
Bills due to suppliers and vendors.
Short-term notes, credit card balances.
Taxes payable, accrued expenses.
Used to compute working capital per acre.
Used to compute working capital per head (optional).
Current assets
$180,000
Current liabilities
$120,000
Working capital
$60,000
Current ratio (assets ÷ liabilities): 1.50
Working capital per acre: $75
Rule of thumb: higher working capital generally improves resilience during volatile seasons.
How it works
- Working capital = current assets − current liabilities
- Current ratio = current assets ÷ current liabilities
- Per-unit metrics help compare farms of different sizes
FAQ
What counts as “current”?
Items expected to convert to cash (or be paid) within ~12 months are typically current.
Is a higher current ratio always better?
Not always—very high ratios can mean idle cash or excess inventory, but low ratios can signal risk.
How to use this farm working capital calculator
- Enter current assets such as cash, receivables, and inventory.
- Enter current liabilities such as operating loans, credit lines, and short-term payables.
- Calculate working capital and liquidity ratios.
- Use per-unit metrics (per acre/head) to compare over time.
Example
Example working capital calculation:
- Current assets: $180,000
- Current liabilities: $120,000
- Working capital: $60,000
- Current ratio: 1.50
More tools in Finance Tools
- Farm Operating Cost Calculator
Estimate total farm operating costs including labor, fuel, seed, fertilizer, equipment maintenance, and overhead to understand true annual farming expenses.
- Farm Cash Flow Calculator
Estimate farm cash flow by summing income sources and subtracting operating expenses, debt payments, and capital spending. Includes net cash flow, margin, and DSCR-style coverage.
- Farm Debt-to-Income Ratio Calculator
Calculate farm debt-to-income (DTI) ratio using annual debt payments and farm income. Includes operating vs long-term debt split and a quick coverage view to assess borrowing capacity.
- Farm Equipment Loan Calculator
Calculate farm equipment loan payments, total interest, payoff timeline, and compare scenarios (rate/term/down payment). Includes a quick affordability view using estimated monthly cash flow.