Working capital and cash flow are two of the most important measures of a business’s financial health. Working capital is a measure of a company’s current assets minus its current liabilities. It measures whether a company has enough liquid assets—such as cash, accounts receivable, and inventory—to cover short-term operating expenses. Cash flow, on the other hand, is concerned with tracking actual money coming in and out of the business over time. It measures how much cash an organization has access to at any given time and helps inform decisions on when to invest, purchase new assets, or expand operations. Both working capital and cash flow are essential indicators that provide business owners with insights into the overall health of their companies.