How Is Working Capital Important For A Company
Working capital happens to be one of the most important essentials that a company should have. Let me start by telling you what exactly working capital is. Working capital basically assesses the companies ability to pay all of its current liabilities with the help of its current assets, and it gives us an indication of the financial health of the company. It also gives a clear indication of the operational efficiency of the company. In other words, working capital is basically the difference between the current assets and current liabilities of a company. Working capital does not expire. The funds do not expire; the working capital figure does indeed change over time. That is because, the current liabilities and the current assets of the company are based on a yearly…