How will calcualte current asstes of working capital?
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What is the working capital formula?
The working capital formula is:
Working capital = current assets – current liabilities
The working capital formula tells us the short-term, liquid assets remaining after short-term liabilities have been paid off. It is a measure of a company’s short-term liquidity and important for performing financial analysis, financial modeling, and managing cash flow.
Below is an example balance sheet used to calculate working capital, where “CA” is Current Assets, “CL” is Current Liabilities, and “WC” is Working Capital.
The working capital formula is:
Working capital = current assets – current liabilities
The working capital formula tells us the short-term, liquid assets remaining after short-term liabilities have been paid off. It is a measure of a company’s short-term liquidity and important for performing financial analysis, financial modeling, and managing cash flow.
Below is an example balance sheet used to calculate working capital, where “CA” is Current Assets, “CL” is Current Liabilities, and “WC” is Working Capital.
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