Advertisement
Anonymous
Working capital is basically the “capital” that you need in your business to make it “working” on an ongoing basis.
3
Discussion (3)
Learn how to style your text
Reply
Save
Write your thoughts
Related Articles
Related Posts
Related Posts
Advertisement
Working capital= Current assets - Current liabilities
Of course, positive working capital will be better. If a company have negative working capital, they will have problem paying creditors. High working capital also act as a cushion in case something goes wrong, example Covid lockdowns. Working capital is not the only way of analysing liquidity.