Question

What is working capital ? ​

Answer 1

Working capital refers to the capital of a business which is used in its day-to-day trading operations.

What is working capital?

Working capital refers to the capital of a business which is used in its day-to-day trading operations. It is a measure of a company's liquidity, operational efficiency, and short-term financial obligations.

Working capital is computed as current Assets minus current Liabilities.

Examples of working capital includes :

• Marketable securities—such as stocks, mutual fund shares.
• Cash equivalents such as money-market funds and Treasury bills.
• Cash such as funds in checking or savings accounts.

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Answer 2

Working capital, also known as net working capital (NWC), is the difference between a company's current assets.

Assets = Business assets deliver value to a company