How do you calculate net current assets in Excel?

The value of net current assets, or working capital, helps to gauge a company's short-term financial health. If you are working on a balance sheet in Microsoft Excel, you usually have two sides: assets and liabilities. The formula for net current assets is total current assets minus total current liabilities.

Then, calculate the total , which include accounts payable, short-term debt, loans payable, income taxes payable and other debts due within a short period of time. For example, if you have current liabilities in cells F1 to F5, select cell F6 and enter "=SUM(F1:F5)" to calculate total current liabilities. Label this by typing "Total current liabilities" in cell D6.

Finally, select another empty cell and calculate net current assets by entering "=B9-F6" into the formula bar, which gives you the value of net current assets.

You can now analyze whether the company is in good or bad financial health. For example, if the company's current liabilities exceed its current assets, it can run into problems paying back creditors in the short run. If total current assets are greater than total current liabilities, the company has positive working capital and should meet its short-term debt obligations, and creditors should be paid.