What is Working capital?
Finance & accounting. A plain-English definition for Australian business owners.
Working capital is the difference between current assets (cash, receivables, inventory) and current liabilities (payables, short-term debt).
It measures the business's short-term operational liquidity. Positive working capital means the business can meet short-term obligations from current assets; negative working capital often signals cash flow stress.
In a connected back office this sits with the Finance hub, where Valont runs bookkeeping, managed payroll and bas & tax compliance for Australian SMEs as one team. The full definition set is on the glossary.
Talk to an Advisor
General information, not advice. For how this applies to your business, talk it through with a Trusted Advisor or start with the Business Health Check.