Working capital assessment is a vital tool used by businesses to optimize their financial resources and operations. It involves measuring the liquidity of a business—the ability to meet its short-term obligations—and ensuring that available funds are allocated in the most efficient way possible. When conducting a working capital assessment, businesses analyze their current financial position, examining factors such as cash flow, inventory levels, accounts receivable, debts and upcoming expenses. This helps them understand their “real” financial state and better anticipate potential cash flow issues. With this knowledge, companies can develop ways to improve their financial health and take advantage of emerging opportunities.