Working capital
Working capital is the difference between a company's current assets (such as cash, accounts receivable, and inventory) and its current liabilities (like accounts payable and short-term debt). It measures the short-term liquidity available to fund day-to-day operations and meet immediate financial obligations. Effective management of working capital is vital for maintaining healthy cash flow, ensuring timely invoicing and collections, accurate financial accounting, and meeting tax responsibilities.
Translations
| Language | Code | Translation |
|---|---|---|
| English | en | Working capital |
Related Terms
Capital · Capital budget · Capital expense · Capital expenditure
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