Working Capital Basic's

1. Working Capital
- Arun Khedwal

2. What is it ?
Money available to the company for day
to day operations.

3. Formula
Working Capital =
Total Current – Total Current
Assets Liabilities

4. Example

5. Why it matters?
Common measure
- Liquidity
- Efficiency
- Over all Health of the organization

6. Working Capital
Positive Working Capital
Current assets exceed current liabilities
Pay Off its short-term liabilities almost immediately
Good Shape
Spend aggressively
Negative Working Capital
Current assets are less than current liabilities
Unable to Pay Off its short-term liabilities almost
immediately
Got big problems

7. Current Ratio

8. Example

9. Thanks