Venture Capital and Private Equity
Working capital refers to the difference between a company’s current assets and current liabilities, representing the short-term financial health and operational efficiency of a business. It is crucial for meeting day-to-day operations and ensuring that a company can cover its short-term obligations, such as payroll and inventory purchases. A positive working capital indicates that a company can maintain its operations smoothly, while negative working capital could signal financial trouble or inefficiencies.
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