Terms Beginning With 'w'

Working Capital

  • January 29, 2020
  • Team Kalkine

In simple terms, capital refers to money. Working capital is the money that is available to fund the daily operations of a business. In other words, working capital is the indicator of a company’s financial health. It is the measure of operational efficiency, liquidity and short-term financial stance. In financial terms, it can be expressed through the formula mentioned below:

Working Capital = Current Assets - Current Liabilities

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