what exactly is working capital?
In: 2
In simple terms, it is your Short Term Assets MINUS your Short Term Liabilities.
Short term assets are Cash plus anything that can be turned to cash in 90 days such as Accounts Receivable or Inventory.
Short term liabilities are anything that you have to pay in the next 90 days.
Some people use 30 days rather than 90 days. This is usually due to the type of business.
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