What is working capital?

Question

Accepted Answer

Working capital is the measure of a company's operational liquidity and its ability to meet short-term obligations.

Working capital is the difference between current assets and current liabilities.
It represents the funds available to a company for day-to-day operations.
Positive working capital indicates a company's ability to pay off its short-term debts.
Negative working capital suggests a company may struggle to meet its financial obligations.
Examples of current assets include cash, accounts receivable, and inventory.
Examples of current liabilities include accounts payable, short-term loans, and accrued expenses.

Accepted Answer

In short, working capital is the money available to meet your current, short-term obligations. To make sure your working capital works for you, you'll need to calculate your current levels, project your future needs and consider ways to make sure you always have enough cash.

Accepted Answer

Working  capital iis calculated as u current assets  minus current liability which is used in day to day trading  I an simple accounting the concept of working capital focus on tha capital resources that a given company can count on in the short team operated

What is working capital?

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