Answer
Affirmatively, a working capital can be alluded as the excess of the total current assets over the total current liabilities and many are the times when this excess is referred to as the working capital.
Working capital represents the net amount of a company's relatively liquid resources; that is, it is the liquidity buffer available to meet the financial demands of a company's operating cycle.
Work Step by Step
Alternatively, working capital can also be viewed as to what a business uses in its day-to-day trading operations and which is calculated as:
current assets-current liabilities.
