Finance - Concept
Working capital
The money and other short-term resources a business has available after its debts are accounted for
What's it for?
Shows whether a business has enough short-term resources to cover day-to-day operations.
For example…
A retailer has £200,000 in cash and stock due to turn into cash soon, but £150,000 of short-term bills to pay, leaving £50,000 of working capital