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what does working capital measure

 

Definitions from the Web

Working Capital

Definition:

Working capital is a financial metric that measures a company's short-term liquidity and its ability to meet its current financial obligations. It represents the difference between current assets and current liabilities.

Usage:

As a noun:

Working capital refers to the amount of funds a company has available to cover its day-to-day operations.

Example Sentence: The management decided to increase working capital to ensure smooth business operations during the slow season.

As a verb:

Working capital can also be used as a verb to denote the act of managing and optimizing a company's current assets and liabilities.

Example Sentence: The financial team is actively working on capitalizing assets and minimizing liabilities to optimize the working capital position.

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