Definition
Working capital is the difference between a company's current assets and current liabilities. It is a measure of a company�s short-term financial health and its ability to meet its immediate obligations.
Related Services
Financial planning, cash flow management, and liquidity analysis services help businesses assess and manage their working capital needs. These services ensure that companies can maintain smooth operations and avoid cash shortages.
Problem and Application
Improper management of working capital can lead to liquidity problems and disrupt business operations. Maintaining a balance is essential for managing day-to-day expenses while planning for growth.
Conclusion
Working capital is an essential measure of a company's financial health. Proper management of working capital ensures that businesses can maintain operational efficiency and manage short-term financial obligations effectively.
