Difference between revisions of "Working Capital"

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Working Capital
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The working capital of a company is the difference between the companies short term assets ([[Accounts Receivable|Accounts Receivable]] and liabilities (Inventory of raw materials):
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{{{
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Working Capital = Current Assets
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Net Working Capital = Current Assets − Current Liabilities
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Equity Working Capital = Current Assets − Current Liabilities − Long-term Debt
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}}}
 
[[Category:finance]]
 
[[Category:finance]]
  

Latest revision as of 19:26, 27 August 2020

The working capital of a company is the difference between the companies short term assets (Accounts Receivable and liabilities (Inventory of raw materials):

{{{ Working Capital = Current Assets Net Working Capital = Current Assets − Current Liabilities Equity Working Capital = Current Assets − Current Liabilities − Long-term Debt }}}