Working Capital: What it is and how to calculate it

working capital  Working Capital Formula The formula to calculate working capital—at its simplest—is equal to the difference between current assets and current liabilities  Working capital management represents the relationship between a firm's short-term assets and its short-term liabilities It aims to ensure that a company can

In short, working capital is the money available to meet your current, short-term obligations and is a terrific indication of a company's health Working capital management represents the relationship between a firm's short-term assets and its short-term liabilities It aims to ensure that a company can

capital stock alone 6 Relation of working capital to Working Capital to Total Assets Amount of Working Capital Needed Depends upon Nature of Business  Changes in working capital simply shows the net affect on cash flows of this adding and subtracting from current assets and current liabilities When changes in