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How it works in Cash management?
it is calculated as the current assets minus the current liabilities.
Adding to Raja Moiz answer; Working capital is defined as the difference between current assets and current liabilities.
Current assets are the most liquid of your assets, meaning they are cash or can be quickly converted to cash.
Current liabilities are any obligations due within one year. Working capital measures what is leftover once you subtract your current liabilities from your current assets, and can be a positive or negative amount. The working capital is available to pay your company's current debts, and represents the cushion or margin of protection you can give your short-term creditors.