Balance Sheet Calculator

A balance sheet is a snapshot of what a business owns and what it owes on a specific date. The fundamental equation that every balance sheet must satisfy:

Assets = Liabilities + Shareholders Equity

If it does not balance, there is an error in the numbers. This identity is not optional — it follows from double-entry accounting, where every transaction affects at least two accounts equally.

Assets are split into current (convertible to cash within a year: cash, receivables, inventory) and non-current (longer-lived: property, equipment, intangibles). Liabilities follow the same split: current liabilities (due within a year: payables, short-term debt) and long-term liabilities (bonds, deferred taxes, lease obligations).

Shareholders equity is what remains after all creditors are paid:

Shareholders Equity = Total Assets - Total Liabilities

Key ratios derived from the balance sheet:

Working Capital = Current Assets - Current Liabilities A positive number means the business can cover its near-term obligations without selling long-term assets. Negative working capital is a cash flow warning sign — though some businesses (Amazon, grocery chains) run negative working capital intentionally, because customers pay before suppliers are due.

Current Ratio = Current Assets / Current Liabilities Below 1.0 means current liabilities exceed current assets. Most lenders want to see at least 1.5x.

Debt-to-Equity = Total Liabilities / Shareholders Equity Higher values mean more leverage. Acceptable levels vary by industry.

This calculator works for any currency or any scale — use it for a startup, a project, or a full corporation.