What is working capital?

working capital is the amount required for conducting day to day business activities.
it is calculated b as follows WORKING CAPITAL = CURRENT ASSETS - CURRENT LIABILITIES

working capital is the difference between current assets and current liabilities.
it is used to manage day to day operations.

Working capital is defined as current assets minus current liabilities; it tells the financial statement user how much cash is tied up in the business through items such as receivables and inventories and also how much cash is going to be needed to pay off short term obligations in the next months.

Current assets minus current liabilities. Working capital measures how much in liquid assets a company has available to build its business. The number can be positive or negative, depending on how much debt the company is carrying. In general, companies that have a lot of working capital will be more successful since they can expand and improve their operations. Companies with negative working capital may lack the funds necessary for growth. also called net current assets or current capital.

 

Working capital= current assets-Current Liabilities.This is the fund required to meet the day today running of the company.

A capital is the amount which is introduced by the owners in the Business.
Working Capital is that part of capital which is used for running the day to day affairs of the entity.
This is a financial measure which is used to compute the liquidity of the entity.
It is used to compute the short term financial health of the entity.
Working Capital is computed by reducing the current liabilities from the current assets.
and is represented in the following way: Working Capital = Current Assets - Current Liabilities.