Working Capital is the Capital of a business that can be used in the day-to-day trading and it can be arrived by calculating current assets-current liabilities.
Working Capital Current Assets-Current Liabilities.
Working Capital is measure of both a company's efficiency and its short-term financial health. Working capital also gives investors an idea of the company's underlying operational efficiency.WC CA-CL.
Working capital can be classified into two types gross working capital and net working capital. The total of current assets is known as gross working capital and the difference between the current assets and current liabilities is known as net working capital or working capital. Working capital is useful to know the position of the firm for meeting the unknown expenditure or liabilities.
