Save BIG on 2-Yr Ad-Free CAclubindia Pro Membership. Subscribe Now!

What is working capital and how calculate

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Birbal Yadav

Birbal Yadav (Querist)
Follow

14 January 2016 What is working capital and how calculate it

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
Follow

14 January 2016 Working capital is the amount of a company's current assets minus the amount of its current liabilities.
Working Capital is a measure of both a company's efficiency and its short-term financial health it measures company's liquidity

Vinayak

Vinayak (Expert)
Follow

14 January 2016 working capital is the measurement of how much money is tied up in the in running operations. Current assets such as Debtors, Stock, short term advances etc is the money blocked in running the operations. Against this Current Liabilities such as creditors, short term payables etc is the credit period enjoyed in normal cycle of operations. When we net these figures, we get the net working capital in the normal operations.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now