What is working capital?

Working capital shows how much a business has in liquid assets. Liquid assets are cash, or short term assets that can be quickly converted into cash. Working capital is calculated as (current assets – current liabilities).

Back to glossary
We can also help with

Cash flow management

Top tips on managing your cash flow effectively

Download

Break-even calculator

An essential part of every business; let us work it out for you

Calculate

Improve your cash flow

8 steps to stay in control of the cash flow in your business

Read more

Credit check any UK company

Get greater insight to make quick and informed business decisions

Try for free