Section 1
Working Capital
Book
Version 3
By Boundless
By Boundless
Boundless Finance
Finance
by Boundless
3 concepts
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Calculating Working Capital
Working Capital = current assets - current liabilities.
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Controlling the Components of Working Capital
Working capital (WC) can be controlled by changing the levels of current assets and/or current liabilities through a number of mechanisms.
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Importance of Working Capital
Working capital (WC) is a measurement of a company's operating liquidity.