Working Capital Management

Working Capital Management

Understanding Working Capital and Its Role in Business Success Working capital is the lifeblood of any business. It represents the difference between a company’s current assets and current liabilities. Essentially, it measures the liquidity available to a business for day-to-day operations. Key Components of Working Capital Current Assets: Cash, accounts receivable, inventory, prepaid expenses, and … Read more

Formula to Calculate Net Working Capital

Understanding Net Working Capital Net working capital is a crucial measure of a company’s short-term financial health and its operational efficiency. It indicates the liquidity available to meet short-term obligations. What is Net Working Capital? Net working capital is defined as the difference between a company’s current assets and current liabilities. It essentially reflects the … Read more