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oboloo Glossary

Total Working Capital

oboloo Glossary

Total Working Capital

Total Working Capital is a measure of a company’s liquidity and financial health, calculated as the sum of its current assets minus its current liabilities. It’s an important number for investors and business owners alike, representing the amount of cash available to fund operations and meet short-term obligations. In other words, it’s your money on hand – working capital that can be used to generate more profits or expand operations. Total Working Capital is an essential measure of efficiency and solvency, and strong management of working capital can mean the difference between success and failure. Put simply, Total Working Capital can make or break a business!

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