Working capital, also known as net working capital (NWC), is the amount of money a company has available to operate after deducting its current liabilities from its current assets. Current assets are items like cash, accounts receivable/customers’ unpaid bills, and inventories of raw materials and finished goods. Current liabilities are items such as accounts payable and debts.

Working capital is a commonly used measurement to gauge the short-term financial health and efficiency of an organization.