Working Capital Definition

Working capital is a financial metric which usually represents operating liquidity available to a business, corporation or other organization, including governmental organization. Along with fixed assets for example plant and equipment, it is considered an integral part of operating capital. Gross working capital equals to current assets. Working capital is actually calculated as present assets minus present liabilities. A negative working capital shows that if all short-term creditors called from the debt, the company would not manage to meet these demands at any given time.