51.+Calculate+working+capital.

How do you calculate working capital for a business?

A measure of both a company's efficiency and its short-term financial health. The working capital ratio is calculated as:



Positive working capital means that the company is able to pay off its short-term liabilities. Negative working capital means that a company currently is unable to meet its short-term liabilities with its current [|assets] (cash, accounts receivable and inventory).

Also known as "net working capital", or the "working capital ratio".

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