What Is Working Capital ‘Working Capital’ is the term used basically to indicate the financial condition of a firm or an organization in the short term. In other words, it can be called a scale to measure the overall efficiency of the business entity. To obtain the working capital of a specific firm or organisations one is required to subtract the current liabilities from the total current assets of the entity. This ratio suggests whether the particular organization has sufficient assets with it to take care of its short-term debt. To put it the other… Read