Working capital demonstrates a business's ability to fund its operations and pay its short-term expenses. When a business has enough liquidity to pay its short-term debt, accounts payable ...

Positive working capital generally means a company has enough resources to pay its short-term debts and invest in growth and expansion. Conversely, negative working capital indicates potential ...

You can also work out what value of sales is being generated per £1 invested. This is known as the capital turnover ratio and is calculated by dividing sales by capital employed. This can give ...