Working Capital
Working capital is a measure of a company's short-term liquidity and is calculated by subtracting total current liabilities from total current assets. Working capital is important for businesses to have in order to pay their short-term debts, such as accounts payable, and to have enough cash on hand to purchase inventory and pay for other operational expenses. Having sufficient working capital is essential for businesses to stay afloat and remain profitable. Here, you will use many formulas and ratios to assess a company's financial health.
Lesson Videos
Working Capital Overview and Objectives
Introduction to Working Capital
Economic Order Quantity
Quick Payment Discount
Liquidity Ratios
Activity Ratios
Profitability Ratios
Debt/Leverage Ratios
Internal Rate of Return
Turnover Ratios
Company Working Capital Metrics
Disposing of Accounts Receivable
Debt Covenants
Working Capital Summary
Working Capital - Practice Questions
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