Why working capital matters to your business

What is a good working capital ratio working capital Net working capital is the difference between current assets and liabilities of a business It reflects the business's operational liquidity and ability to working capital Working capital is derived from the current assets and current liabilities as detailed in the balance sheet It is calculated by the equation: Working Capital =

capitalization Working capital is the capital a company has left after it covers all of its debts It is calculated by subtracting current liabilities from