Working Capital refers to the capital required for day to day working of an organisation. Apart from the investment in fixed assets every business organisation needs to invest in current assets, which can be converted into cash or cash equivalents within a ** of one year. They provide liquidity to the business. Working capital is of two types - working capital and Net working capital. Investment in all the current assets is called Working Capital whereas the excess of current assets over current liabilities is called Net Working Capital.
