Working Capital
- Arun Khedwal
What is it ?
Money available to the company for day
to day operations.
Formula
Working Capital =
Total Current – Total Current
Assets Liabilities
Example
Why it matters?
Common measure
- Liquidity
- Efficiency
- Over all Health of the organization
Working Capital
Positive Working Capital
Current assets exceed current liabilities
Pay Off its short-term liabilities al...
Current Ratio
Example
Thanks
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Working Capital Basic's

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Working Capital Basic's

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Working Capital Basic's

  1. 1. Working Capital - Arun Khedwal
  2. 2. What is it ? Money available to the company for day to day operations.
  3. 3. Formula Working Capital = Total Current – Total Current Assets Liabilities
  4. 4. Example
  5. 5. Why it matters? Common measure - Liquidity - Efficiency - Over all Health of the organization
  6. 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. 7. Current Ratio
  8. 8. Example
  9. 9. Thanks

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