what is the exact definition of working capital?
This query is : Resolved
16 October 2007
Sir kindly give me accurate definition of working capital.
Miss Komal Mantri
(Expert)
16 October 2007
Net working capital is excess of current assets over current liabilities.....
Gross WC = current Assets
Gross WC = current Assets
16 October 2007
Current assets minus current liabilities. Working capital measures how much in liquid assets a company has available to build its business. The number can be positive or negative, depending on how much debt the company is carrying. In general, companies that have a lot of working capital will be more successful since they can expand and improve their operations. Companies with negative working capital may lack the funds necessary for growth. also called net current assets or current capital.
16 October 2007
working capital is the fund required for completing one cylce from purachse of raw material to realistion of trade debt.
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