What is the purpose of working capital?

To measures how much in liquid assets a company has available to build its business Working capital = current assets - current liability The figure could be positive or negative

The purpose of working capital is to make sure that the organisation has the required funds to function on a day to day basis.
In other words, working capital is the amount of capital required by an organisation to meet its day to day expenses.
Petty cash for daily expenses is a classic example of working capital.

In simple terms, Working capital is the cash available to a business/organization for the running of the day to day operations.The main purpose of Working capital is to measure the amount available for the business to meet its short term obligations.
Sources of Working capital can be long term loans, net income from sales, share holder payments and/or sale of assets.

Working capital is the funds required for  day to day runing the establishment such as purchase of raw materials,manufacturing and other Expense (Direct Expenses),Sales and Admn Expenses,payment of  Interest and Taxes.We can say it is the life blood of the industry for running.

Current Ratio is   Total Current Assets/ Total Current Liability, As per  Indian  standard  the ratio should be at least 1.33  of the total liability

The main purpose of Working Capital is to help an organisation meet its day-to-day financial needs.