Working Capital

Working capital is current assets minus current liabilities.

It measures short-term financial health and operational efficiency, showing whether a business can cover its short-term obligations.

- Used in treasury and financial management for funding, investment, and risk decisions.
- Used to evaluate cash flows, financing costs, and capital structure.

- Example: Finance teams use **Working Capital** when planning funding needs and managing cash and risk.

- Why it matters: Supports liquidity and risk control and improves the quality of financing and investment decisions.