What is working capital and how calculate

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Birbal Yadav

Birbal Yadav (Querist)
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14 January 2016 What is working capital and how calculate it

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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14 January 2016 Working capital is the amount of a company's current assets minus the amount of its current liabilities.
Working Capital is a measure of both a company's efficiency and its short-term financial health it measures company's liquidity

Vinayak

Vinayak (Expert)
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14 January 2016 working capital is the measurement of how much money is tied up in the in running operations. Current assets such as Debtors, Stock, short term advances etc is the money blocked in running the operations. Against this Current Liabilities such as creditors, short term payables etc is the credit period enjoyed in normal cycle of operations. When we net these figures, we get the net working capital in the normal operations.

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