Tag: what is working capital meaning

  • What Is Working Capital? Importance of working capital

    What Is Working Capital? Importance of working capital

    What Is Working Capital “Working capital is calculated by subtracting current liabilities from current assets” as listed on the company’s balance sheet. Current assets include cash, accounts receivable and inventory. Current liabilities include accounts payable, taxes, wages and interest owed. Working capital is a financial metric calculated as the difference between current assets and current liabilities.…