Calculate Change in Working Capital is a key metric used to measure changes in a business’s short-term liquidity. It indicates how much cash and liquid assets are available to a company to cover its current liabilities, including debts, payroll and inventory costs. To calculate Change in Working Capital, subtract the total current liabilities from the total current assets. The result reveals how much working capital a company has at its disposal and can be used to determine if it can continue to operate effectively. Tracking this number over time allows companies to identify trends in their liquidity and plan accordingly.