oboloo Glossary

Working Capital Calculate

oboloo Glossary

Working Capital Calculate

Working capital calculate is a financial measure used to assess the operational efficiency of a business. It takes into account a company’s current assets, such as cash, accounts receivable, and inventory, and subtracts its current liabilities, such as accounts payable and short-term debt. The result gives investors and lenders an idea of how liquid a company is in the short-term, and what kind of cushion it has against financial strain or debt obligations. In other words, working capital calculate helps you determine how much “oomph” your business has – or how much punch it can pack when times get tough.