Working Capital
InvestingCurrent assets minus current liabilities, representing the short-term financial health and operational liquidity of a business.
Example
Example: Consider an investor building a $100,000 portfolio. Working Capital — current assets minus current liabilities, representing the short-term financial health — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.