Operating Working Capital
The cash tied up in day-to-day operations. Money sitting in inventory and customer IOUs, minus what suppliers are lending you. Does NOT include cash in the bank.
- How it's worked out
- Inventory + Accounts Receivable − Accounts Payable
- Which way is better
- Read it in contextNeither higher nor lower is better on its own. Read it alongside the measures around it.
Written by Mandy Walker, founder of Focus on Cash. Updated October 2026. This explanation comes from the glossary inside Focus on Cash, so it matches the words you see in the app.
Related measures
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