Working Capital
The cash a business needs to fund day-to-day operations — current assets minus current liabilities.
What does working capital mean?
It covers the gap between paying for inventory and collecting from customers. Too little starves growth; too much is idle cash. The cash conversion cycle measures how long money is tied up.
Put it to use
All glossary terms Working Capital Needs Calculator Working capital essential to running your business. This calculator assists you in determining your working capital needs for the next year. Financial Ratios Calculator This calculator helps you to zero in on areas of your business that may need attention. Areas such as solvency, liquidity, operational efficiency and profitability.