It is the capital that is required by the company to finance its current assets. Working capital represents the funds to finance regular operations that include day-to-day businesses. Working capital makes it easy to gauge the company’s operating liquidity.

Types of working capital are:

  • Value-Based
    • Gross working capital
    • Networking capital
  • Time-Based
    • Temporary working capital
    • Permanent working capital
BY Best Interview Question ON 06 Oct 2021