Liquidity

What is Working Capital?

Working capital is the difference between current assets and current liabilities — measuring the short-term financial cushion available for daily operations.

Formula

Working Capital = Current Assets - Current Liabilities

How to Interpret

Positive working capital means the company can fund its day-to-day operations. Negative working capital can be fine for asset-light businesses.

Typical Ranges

Positive and stable. Negative is acceptable for companies like Amazon that collect before they pay.

Analyze Working Capital by Sector

See how working capital varies across Indian market sectors:

Learn More in the Academy

Find Stocks Using This Metric

Use the Equiscale Stock Screener to filter Indian stocks by Working Capital.

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