Compute working capital is a measure of a business’s ability to pay its short-term obligations. It’s calculated by subtracting current liabilities from current assets. A healthy working capital indicates that a company has enough liquidity to meet its short-term obligations and ensure continued operations. In other words, it helps determine if a business will survive in the long run! Companies can use their working capital to make investments, fund operations, or prepare for difficult economic times ahead. With the right balance of current assets and liabilities, businesses can ensure they’re well-positioned for success in the future.