Working Capital

Working capital is the difference between current assets and current liabilities. It measures a company's short-term liquidity and operational efficiency.

Positive working capital indicates the ability to cover near-term obligations. It is influenced by receivables, payables, inventory, and cash management.

Related Terms

Liquidity

Liquidity refers to how easily an asset can be converted to cash without significantly affecting its...

Balance Sheet

A balance sheet is a financial statement that reports a company's assets, liabilities, and sharehold...

Accounts Receivable

Accounts receivable is money owed to a business by its customers for goods or services delivered on ...

Accounts Payable

Accounts payable represents money a business owes to suppliers for goods or services received. It is...

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