Mastering Working Capital: Simple Formulas & Step-by-Step Calculation Guide
Working capital is the lifeblood of any business. Whether you’re a budding entrepreneur, a seasoned business owner, or a finance student, understanding how to calculate and manage working capital is crucial to ensure operational efficiency and financial health. This blog post will walk you through what working capital is, why it matters, how to calculate it step-by-step, and the key formulas you need to know.