What does working capital show?
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roscoe
Apprentice
Joined: 25 Nov 2006
Posts: 2
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 Posted: 08/18/08 - 07:01 Post subject: |
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| Hello, I was just wondering if anyone could explain to me what does working capital show. This is so confusing to me. I tried searching on the internet but I had troubles in understanding the explanation. That is the main reason I need your help. Can you help poor ignorant? Thank you all for making a comment. |
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ossie
Apprentice
Joined: 05 Feb 2005
Posts: 1
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| Posted: 09/17/08 - 01:15 Post subject: |
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| Working capital is the difference between current assets and current liabilities. It shows us is the company able to pay off its short term liabilities. When liabilities are bigger than the assets then an entity has working capital deficit. If this is not enough for you can look it up in books related to economics. You will find plenty more information. |
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