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.
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter US or Indian stocks by Working Capital.