What is Working Capital? working capital

Working Capital

The excess of current assets less current liabilities. The figure represents the amount of resources the business has in a form that is readily convertible into cash. Same as net current assets.


In accounting and finance, used to describe the amount, if any, by which a business current assets exceed its current liabilities. Also used more loosely to describe the funds a firm has available to run its day-to-day business affairs.

Working Capital = Current Assets - Current Liabilities
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