Working capital change is the measure of a company’s current assets (cash, inventories, and accounts receivable) minus its current liabilities (accounts payable). It represents how much money a business has available to pay for day-to-day expenses without having to borrow more funds. In other words, it’s the difference between being able to afford operations today versus worrying about cash flow issues tomorrow. Changes in overall working capital are closely monitored as they can provide insight into a company’s current financial health and future performance.