Working capital
Current assets minus current liabilities.
Definition
Working capital measures the short-term resources available to fund day-to-day operations: receivables, inventory and cash, less payables and other obligations due within a year.
Why it matters
Growth consumes working capital. Companies that scale quickly often need financing not because they are unprofitable but because cash is trapped in receivables and inventory.
Related terms
See this metric on your own numbers
NanoFora calculates it from your actual financial data and shows the transactions behind it.
Start free