Working capital financial statements provide a snapshot of a business’ liquidity and solvency. By understanding a company’s current assets, liabilities and the difference between them (working capital), businesses can identify and take control of their finances. The statement also offers insight into a company’s ability to generate profit in the short term; showing how easily it can cover its debts, pay dividends and invest in new areas. It is an essential tool for planning and decision-making that provides detailed insights into cash flow and credit management.