Successful managers make informed business decisions based on metrics, one of which is working capital. No business can operate without generating sufficient cash inflows, and monitoring working capital can help you get enough cash in the door each month.
You can use the components of working capital and some key financial ratios to improve your outcomes and your business’s short-term financial health. Read more to explore what working capital is, its formula, and helpful management tips.
- Working capital definition
- Importance of working capital
- Working capital formula
- Operating working capital definition and formula