Question Details

	Username: ForexGuy Rating: Asked to: Apinya Kamon Date Created: 28 May 2018
Category	28
Tag	Financial
Question	What is 'Working Capital'?

Advice from Guru

Hello ForexGuy,

Working capital, also known as net working capital, is the difference between a company’s current assets, like cash, accounts receivable (customers’ unpaid bills) and inventories of raw materials and finished goods, and current liabilities, like accounts payable.

Working Capital = Current Assets - Current Liabilities

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