What working capital is
Working capital is current assets less current liabilities: the money left for day-to-day trading. See what changes it.
Task 1Current assets less current liabilities4 questions
Working capital is current assets less current liabilities. It uses the same two totals as the current ratio, taken away instead of divided.
It is the money left for day-to-day trading once the short-term debts are covered. It is an amount in pounds, not a ratio.
| Item | Last year | This year |
|---|---|---|
| Current assets | 50,000.00 | 60,000.00 |
| Current liabilities | 25,000.00 | 40,000.00 |
Task 2When working capital is negative2 questions
Task 3What changes working capital4 questions