Working capital calculations are an essential measure of any business’s financial health. They help businesses analyze and understand the amount of resources available to fund everyday operations. By comparing a company’s current assets to its obligations, business owners can get a better understanding of their cash flow and liquidity levels. The resulting number gives us an idea of how much working capital a business has and helps in predicting potential problems down the road. Having an accurate working capital calculation is invaluable for businesses looking to make financial decisions now and in the future.