Working capital models are designed to measure a company’s ability to finance its day-to-day operating costs. It looks at a business’s available funds and determines how well it can keep up with immediate needs, allowing the business to forecast future cash flow and make sound decisions regarding investments. By assessing a company’s working capital position, managers can identify potential liquidity issues and opportunistically redeploy resources for greater success. It is an essential tool for any business hoping to stay competitive and profitable in today’s fast-paced marketplace.