What is working capital?

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A measure of both a company's efficiency and its short-term financial health. The working capital ratio is calculated as:

Positive working capital means that the company is able to pay off its short-term liabilities. Negative working capital means that a company currently is unable to meet its short-term liabilities with its current assets (cash, accounts receivable and inventory).

Also known as "net working capital", or the "working capital ratio". By Muhammad Ahmed Kasi
Calculation formula: Net Working Capital = Current Assets minus Current Liabilities

Current asset is also called as Working capital, also known as Gross working capital or GWC, is a financial metric which represents operating liquidity available to a business.
Working capital might mean: shows the portion of a firm's total assets belonging to the firm's owner. The every-day capital of business that is used in trading operations that can be calculated as the difference in current liabilities and current assets is known as working capital.
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What is 'working capital'?

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The Working Capital Ratio or Current Ratio is a financial ratio that measures whether or not a company has enough cash to pay off all the debt payments that are due over the n
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