Working Capital

Calculate the working capital, which is the difference between a company’s current assets and current liabilities.

The working capital is calculated by subtracting total current liabilities from total current assets. It represents the company’s short-term financial health and its ability to cover its current obligations using its liquid assets.

The formula is as follows:

Also known as: net current assets, operating liquidity.

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Calculate the Working Capital in Python

The Working Capital is available in the Ratios module of the open-source Finance Toolkit. Install it with:

pip install financetoolkit -U

Then call get_working_capital as shown below.

from financetoolkit import Toolkit

toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")

working_capitals = toolkit.ratios.get_working_capital()

Which returns:

Parameters

get_working_capital accepts the following parameters:

• rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
• growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
• lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
• standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
• trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.

Related Liquidity Ratios

The Ratios module page introduces the module, and the sidebar lists all of its functions.