Working capital is an essential tool for understanding your business’ financial health and the ability for long-term growth. However, for many of us, it’s one of those terms that we hear a lot but never really understand.
Working capital is the difference between your current assets (what your company owns) and current liabilities (what your company owes). To get a comprehensive understanding of your business’ financial health, operational efficiency, and liquidity, you need to be able to determine your company’s working capital. Take a look at the infographic below for some of the need-to-know facts, and check out the full piece for an in-depth guide to working capital.