Working capital is the amount of money a business has available to fund its day-to-day operations. It is calculated by subtracting a company's current liabilities from its current assets.
Working capital is a measure of a company’s short-term liquidity and is calculated by subtracting current liabilities from current assets. It is an important indicator of a company’s financial health and is used to assess the ability of a company to pay its short-term obligations.
Working capital is a measure of a company’s ability to pay its short-term obligations. It is calculated by subtracting current liabilities from current assets. Current assets include cash, accounts receivable, inventory, and other assets that can be converted into cash within one year. Current liabilities include accounts payable, short-term debt, and other obligations that must be paid within one year.
Working capital is an important indicator of a company’s financial health. A positive working capital indicates that a company has sufficient liquidity to meet its short-term obligations. A negative working capital indicates that a company may not be able to meet its short-term obligations and may need to borrow funds or liquidate assets to pay its bills.
Working capital is also used to assess the efficiency of a company’s operations. A company with a high working capital ratio is considered to be more efficient than a company with a low working capital ratio. This is because a company with a high working capital ratio is able to generate more cash from its operations than a company with a low working capital ratio.
Working capital is an important measure of a company’s financial health and efficiency. It is used to assess the ability of a company to pay its short-term obligations and the efficiency of its operations. A positive working capital indicates that a company has sufficient liquidity to meet its short-term obligations, while a negative working capital indicates that a company may need to borrow funds or liquidate assets to pay its bills.