Working capital is the amount of money a company has available in short-term liquid assets. It determines a company’s immediate liquidity and is often used to manage cash flow and for other forms of ...

To continue reading this content, please enable JavaScript in your browser settings and refresh this page. The pandemic has drastically changed the way business is ...

Working capital measures financial health by subtracting current liabilities from assets. A current ratio above 1 indicates adequate working capital, reflecting company stability. Excessive working ...

Discover how maintaining low working capital boosts efficiency and investment effectiveness while reducing liquidity risks and improving cash flow management.

Working capital is a company’s operational cash for daily functions like bill payments, supply purchases and ensuring smooth operations. Working capital is the money that a business uses for its ...

Cash and cash flow are critical to the health and viability of any company. When companies generate sufficient cash flow from operations to fund their day-to-day business operations, they reduce their ...

Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...

The extent to which an increase in revenue will affect your company's working capital depends on how efficiently your business operates. If your company is already profitable, then more revenue should ...

Companies are looking to technology to help them delve deeper into their working capital processes. The debate that has long raged over whether enterprise resource planning (ERP) systems can compare ...