Working capital : Working capital can be defined as the excess of the current assets over the current liabilities. It is a measure of both a company’s operational efficiency and its short-term financial health. Working capital can be calculated as under – W o r k i n g C a p i t a l = T o t a l c u r r e n t a s s e t s – T o t a l c u r r e n t l i a b i l i t i e s To discuss: Why working capital is given special attention in the process of analysing balance sheets .

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Chapter 17, Problem 6DQ

To determine

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Working capital: Working capital can be defined as the excess of the current assets over the current liabilities. It is a measure of both a company’s operational efficiency and its short-term financial health. Working capital can be calculated as under –

$W o r k i n g C a p i t a l = T o t a l c u r r e n t a s s e t s - T o t a l c u r r e n t l i a b i l i t i e s$

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Why working capital is given special attention in the process of analysing balance sheets.

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