From your balance sheet
Current assets (cash within a year)
$
$
What customers owe you, less anything you don't expect to collect.
$
$
$
Current liabilities (due within a year)
$
$
$
$
Only the current portion of long-term loans, plus any line of credit.
$
Customer deposits, accrued wages, unearned revenue.
Result
Current assets
$130,000.00
Current liabilities
$65,000.00
Working capital
Current assets − current liabilities
$65,000.00
Current ratio
Current assets ÷ current liabilities
2.00
Quick ratio (acid test)
(Cash + receivables) ÷ current liabilities
1.46
Cash ratio
Cash ÷ current liabilities
0.62
More than enough current assets to cover what is due this year.
Common rules of thumb: a current ratio between 1.5 and 2 and a quick ratio of 1 or more. Lenders and industries differ, and a very high ratio can mean cash sitting idle. Works in any currency.