what is Working Capital?
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the capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities
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Working capital (WC) is a financial metric which represents operating liquidity available to a business, organization, or other entity, including governmental entities. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Gross working capital is equal to current assets. Working capital is calculated as current assets minus current liabilities.[1] If current assets are less than current liabilities, an entity has a working capital deficiency, also called a working capital deficit and negative working capital.
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