Change in working capital refers to the difference in a company's current assets and current liabilities over a specific period. This measure is crucial in understanding how much capital is tied up in the day-to-day operations of a business, impacting project cash flows and incremental cash flows significantly. It reflects how efficiently a company manages its short-term assets and liabilities, influencing liquidity and operational efficiency.
congrats on reading the definition of Change in Working Capital. now let's actually learn it.