Working capital cash flow is a measure of the amount of cash generated by a business’s operations. It refers to the difference between a company’s short-term assets, such as accounts receivable and inventories, and its short-term liabilities, like accounts payable and credit card debt. This difference establishes how much money is available to finance the daily operations of a business. In other words, working capital cash flow tells you if your business has enough liquid funds to meet its short-term obligations and keep running at an efficient level. When effectively managed, working capital cash flow can be used to reduce liabilities, invest in new products or services, or expand into new markets.