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Afina-wow [57]
2 years ago
15

What is working capital?

Business
2 answers:
Alexandra [31]2 years ago
5 0

answer:

the capital of a business which is used in it day-to-day trading operation, calculated as the current assets minus the current liabilities

Fed [463]2 years ago
3 0

Answer:

Working capital, also called net working capital (NWC), represents the difference between a company’s current assets and current liabilities.

NWC is a measure of a company’s liquidity and short-term financial health.

A company has negative NWC if its ratio of current assets to liabilities is less than one.

Positive NWC indicates that a company can fund its current operations and invest in future activities and growth.

High NWC isn’t always a good thing. It might indicate that the business has too much inventory or is not investing its excess cash.

Explanation:

can you me as brainliest if its right? i just need a few more to rank up! ^-^

Also have a great day and good luck in your studies!

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