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What Is the Working Capital Formula?
What Is the Working Capital Formula?

Working capital is a metric used to quantify your company’s liquidity. In other words, it is the amount of money you would have on hand to run your business if you were to liquidate your assets to pay off your current debts. This calculation is an effective way to analyze your organization’s short-term financial health […]

How Do You Manage Working Capital?

Working capital—the measurement of a company’s liquidity and ability to cover its day-to-day operations—is fundamental to all businesses. When you subtract your firm’s current debts from its liquid assets, the number that remains is your working capital. Ideally, your company should have enough working capital to meet its obligations, plus some left over to cushion […]