Q » What is working capital and why is it important for short-term liquidity?
17 Oct, 2025
A » Working capital is the difference between a company’s current assets and current liabilities, serving as a measure of its short-term financial health. It is crucial for short-term liquidity as it ensures a business can cover its operational expenses and debt obligations without needing to secure additional financing. Adequate working capital allows a company to maintain smooth operations and respond effectively to unexpected financial challenges.
17 Oct, 2025
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