Calculate The Working Capital is a concept used to depict the short-term financial health of a business. It is calculated by subtracting current liabilities from current assets and typically gives an indication of a company’s liquidity. Calculate The Working Capital helps to gauge whether a company has adequate resources to meet its short-term obligations. A positive figure suggests that the business has more than enough cash to finance its current operations, while a negative figure indicates inadequate funds to support them. This metric is key for investors looking to assess risk and potential returns in their investments.