Working Capital
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A Working Capital is a Financial Metric that ...
- See: Current Liabilities, Money Market, Accounting Liquidity, Current Assets, Assets, Profit (Accounting), Liquidity.
References
2016
- (Wikipedia, 2016) ⇒ https://en.wikipedia.org/wiki/working_capital Retrieved:2016-10-7.
- Working capital (abbreviated WC) is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Gross working capital equals to current assets. Working capital is calculated as current assets minus current liabilities. [1] If current assets are less than current liabilities, an entity has a working capital deficiency, also called a working capital deficit.
A company can be endowed with assets and profitability but short of liquidity if its assets cannot readily be converted into cash. Positive working capital is required to ensure that a firm is able to continue its operations and that it has sufficient funds to satisfy both maturing short-term debt and upcoming operational expenses. The management of working capital involves managing inventories, accounts receivable and payable, and cash.
- Working capital (abbreviated WC) is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Gross working capital equals to current assets. Working capital is calculated as current assets minus current liabilities. [1] If current assets are less than current liabilities, an entity has a working capital deficiency, also called a working capital deficit.