Calculating change in working capital is an important key performance indicator (KPI) that allows business owners and executives to measure how efficiently their operations are functioning. It’s an effective way to track the company’s financial health, and changes in working capital can indicate areas where improvements can be made. To calculate change in working capital, you’ll need to subtract the current period’s net operating assets from the previous period’s net operating assets. This figure will tell you if there has been an overall increase or decrease in working capital, which can provide good insight into a company’s financial performance.