Measures a company’s ability to cover its short-term liabilities with its short-term assets.
What it Measures ?
Do we have enough short-term assets to cover short-term debts?
Relevant StakeHolders
Treasury Team, CFO
In-depth Use Case / Real-world Example
Working Capital Analysis evaluates a company’s short-term financial health by comparing its current assets to current liabilities. If a company has ₹500,000 in current assets and ₹400,000 in liabilities, the working capital is ₹100,000. Positive working capital suggests good liquidity, while negative working capital could indicate potential liquidity problems.
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