Operating working capital is an important measure of a business’s financial health, calculated by subtracting current liabilities from current assets. This formula shows how much money is tied up in short-term operations and can indicate whether or not a company has enough liquidity to cover its immediate expenses such as paying employees or buying inventory. Keeping an eye on operating working capital can be a useful way of determining if a business needs to take steps to increase efficiency or seek investment to stay afloat.