What is Working Capital? Working Capital is the amount of funds necessary to cover the cost of operating the enterprises. Working capital means the funds (capital) available and used for day-to-day operations (working) of an enterprise. It consists broadly of that portion of assets of a business that are used in or related to its current ... Working Capital: Definition The term working capital refers to the portion of total capital that is used to run a business efficiently and regularly. It is also known as short-term capital, circulating capital, or liquid capital. Working capital can also be viewed as the current assets minus the current liabilities of an organization. It is also known as the net current assets. Working Capital: Explanation Working capital, in other words, means management of current assets: namely, cash in ... Learn how to calculate working capital, a financial metric that measures a business’s liquidity and ability to cover day-to-day expenses. Find out how to use working capital ratios, such as quick and current, to assess your short-term financial health and operational efficiency. Working capital, also called net working capital, represents the funds available to meet day-to-day operational needs. It’s calculated as the difference between current assets and current liabilities.
