Working capital - Definition - The Economic Times

working capital  Working capital, also known as net working capital , is the sum left over after a company's current liabilities are deducted from its current assets  Working capital, also called net working capital , is an accounting formula that is calculated by subtracting a business's current

Working Capital is a fundamental financial metric that illustrates a company's operational liquidity It is calculated as the difference between How to Improve Working Capital · 1 Send Invoices Quicker · 2 Collect Invoice Payments on Time · 3 Shorten Invoice Payment Terms · 4 Offer Early Payment

Working capital management ensures that your business maintains adequate liquidity by effectively managing cash inflows and outflows Sufficient liquidity Working capital is a measure of a company's financial health, calculated by subtracting current liabilities from current assets