What is working capital
2 Answer(s)
kaustubh.dabadghav
Working capital is the value of current assets minus current liabilities for any company.
Sep 08 2015 02:28 PM
Mahendrasingh
Its the capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.
If the ratio is less than one then they have negative working capital.
A high working capital ratio isn't always a good thing, it could indicate that they have too much inventory or they are not investing their excess cash.
Sep 09 2015 11:22 AM
If the ratio is less than one then they have negative working capital.
A high working capital ratio isn't always a good thing, it could indicate that they have too much inventory or they are not investing their excess cash.