What is it?
Working Capital is the money your business has on hand to run day-to-day operations.

It’s your cash for paying suppliers, covering bills, or handling unexpected costs — the money that keeps your business alive between paying and getting paid.

Simple formula:

Working Capital = Current Assets – Current Liabilities

In simple terms:
Cash + Inventory + Money customers owe you
minus
What you owe in the short term

📊 Why it matters:

• Shows if you have enough cash to keep your business running smoothly.
• Helps you plan when to buy stock or pay bills.
• Signals when you might need extra financing.

Example:

• Cash on hand: 500,000
• Inventory: 200,000
• Accounts Receivable: 300,000
• Accounts Payable (what you owe): 400,000

Working Capital = (500,000 + 200,000 + 300,000) – 400,000 = 600,000

📊 Do you check your working capital each month?
👇 Drop a 💡 if you want help tracking it automatically.

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