What is Working Capital? | Formula, types of Working Capital

In this video, you are going to learn " What is Working Capital in Accounting?"
Working capital is the difference between a company's current assets and its current liabilities. In other words, it represents the amount of money a company has available to cover its short-term obligations and expense.

Topics you are going to learn are:
1. Working capital means \ What working capital is? / Definition of working capital.
2. Elements Included in Working Capital - Current assets, Current liabilities.
3. Working capital formula, net working capital example.
4. Types of working capital - Gross Working Capital, Net Working Capital, Permanent Working Capital, Temporary or Variable Working Capital, Positive Working Capital, and Negative Working Capital.

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#workingcapital #workingcapitalmanagement #economics

[roelsibayan-visd]

Thank you for this video. I gained better understanding and appreciation from a simplified explanation.❤

[mbongisenismarts]

finally understand this in last minute before my special exam wish i could have invested more time like i do with forex coz this its serous hindsight

[FeraldiMarco]

thanks for your video. very clear. Please, allow me a question. the book value of an old machinery sold to buy a new one is considered part to form working capital?. If I sell at a price lower than its book value, would I include that into the calculation for the Net Initial Outlay? Thanks in advance

[KondjaLehtoIipinge-cofr]

this was very helpful it gives you a scope of working capital

[nagarajtirumani]

11-05-2024 Bangalore
Sir, One correction : Working capital less current liabilities equals liquid surplus. - Nagaraj T V Bangalore India

[ShwetaKrishna-po]

Help full. Please share a video regarding computation of cost capital

[thamarakumari-dd]

Do banks have working capital?
How does the concept of Working Capital apply to a bank?
Is the Liquidity Coverage Ratio (LCR) the same as Current Ratio/Working Capital Ratio?
It is difficult to calculate the working capital of a bank because a bank's balance sheet does not include typical current assets and liabilities.

[a.eaccountingtutorials]

Very helpful❤. Please which application did you use for editing your YouTube videos?

[nagarajtirumani]

11-05-2024 Bangalore

I have noticed some mistakes. Working capital less current liabilities = Liquid surplus. Also called Net working capital.

Current ratio: Current assets divided by current assets. Normal ratio is 1.33

That is, if current liabilities are Rs.100, and current assets are 133 then current ratio is 1: 1.33

Current assets also called working capital ha following components: Cash, Inventory and Receivables.

Will you make corrections? Nagaraj T V

[maxhristov]

This is wrong! Cash is a non operating asset, it’s not a part of nwc…

[ShwetaKrishna-po]

Help full. Please share a video regarding computation of cost capital

[ShwetaKrishna-po]

Help full. Please share a video regarding computation of cost capital