Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Working capital is the difference between a business’s current assets and current liabilities, indicating its short-term liquidity to fund day-to-day operations.
The money a business has on hand to cover its near-term bills and running costs.
Negative working capital can signal cash-flow stress even for a profitable business; often financed via cash credit or overdraft facilities against inventory and receivables.
A business with ₹20 lakh current assets and ₹12 lakh current liabilities has ₹8 lakh of working capital.
The money a business has on hand to cover its near-term bills and running costs.
Working Capital helps you evaluate products, compare options, and make informed decisions aligned with goals, tax rules, and risk tolerance in the Indian financial system.