Working capital – more than just a KPI! Working capital is a key performance indicator (KPI) that measures whether or not your company has enough short-term assets to cover its short-term liabilities. It can be either positive or negative, and is typically illustrated as a ratio or percentage. A positive working capital indicates that a business has sufficient funds for daily operations; on the other hand, a negative working capital may be an indication of cash flow problems. By monitoring your business’s working capital, you can get valuable insights into financial health and take steps to create a more stable financial future.