Working Capital in Financial Formulas

Working Capital measures the liquidity and short-term financial health of a business, indicating the company’s ability to meet its short-term obligations with its current assets. And is denoted by A.

Financial formulas that make use of Working Capital

fxAltman's Z Score ModelGo

FAQ

What is the Working Capital?

Working Capital measures the liquidity and short-term financial health of a business, indicating the company’s ability to meet its short-term obligations with its current assets.

Can the Working Capital be negative?

{YesorNo}, the Working Capital, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

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