3/11/2024 0 Comments Working capital formula![]() Operating working capital is defined as operating current assets less operating current liabilities.The working capital cycle is the length of time that funds are either required by or provided to the business.Current liabilities are a future obligation of the business due within 12 months. ![]() ![]() Current assets are resources controlled by the entity and are expected to provide future economic benefits to the business in less than 12 months.Working capital is calculated as current assets less current liabilities.Working capital helps assess the short-term liquidity of a business and determine how well the business is able to cover the payment of its forthcoming liabilities.
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