![]() ![]() ![]() The working capital formula is:Ĭurrent assets – current liabilities = working capital Working capital measures a business’ ability to pay its short-term obligations (current liabilities) with assets it has on hand (current assets). How can optimising inventory boost working capital?.What is the inventory to working capital ratio?.How does inventory affect working capital?.This guide will explain how inventory and working capital work together in a small business. This means you can optimise your working capital by examining your inventory management and making some adjustments. Working capital and inventory have a symbiotic relationship in a business, meaning each component affects the other. ![]()
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