What is Working Capital for a Business?

Working capital, otherwise known as net working capital, is the difference between a company’s current assets and current liabilities.

The main components of working capital usually are:
• Cash
• Accounts receivable
• Inventory
• Accounts payable

Working capital also includes short-term investments, short-term borrowings, and other current assets and current liabilities. But cash, accounts receivable, inventory, and accounts payable are generally the most prominent accounts and thus a primary focus when it comes to working capital optimization.
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[brandonlopliach]

Studying for CFA L1 and your videos have been instrumental in getting through financial statement analysis section. Also Curious what are some of your favorite books behind you?