Working capital: What is it? Is it important to know?

Posted Leave a commentPosted in Current assets, current liabilities, current ratio, quick ratio

Working capital represents the difference between a firm’s current assets and current liabilities. The challenge can be determining the proper category for the vast array of assets and liabilities on a firms’ balance sheet and deciphering the overall health of a firm in meeting its short-term commitments. Current Assets: Are assets that a firm expects […]