Working Capital
Everything you own that turns into cash within a year (cash itself, money customers owe you, inventory) less everything you owe within a year. Positive working capital means the next year's bills are covered by what is coming in.
- How it's worked out
- Current Assets − Current Liabilities
- Which way is better
- Higher is betterHigher is better for cash.
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.
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