Back to Finance Glossary | Previous PageWorking capital represents current assets less current liabilities. More generally, working capital measures how much in liquid assets a company has available to build its business.
Working capital can be positive or negative, depending on how much debt a company is carrying.
Companies with sufficient working capital will can expand and improve their operations. Companies with negative working capital may lack the funds necessary for growth.
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May 20, 2010 | Adam Fish
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