Posted inAll sectors / Finance & Control / Financial

Working capital

Definition of this KPI:
Working capital is a fundamental financial metric that represents a company's short-term financial health and operational liquidity. It measures the company's ability to cover its short-term liabilities with its short-term assets, reflecting the resources available for day-to-day operations.

  • This KPI can be calculated as: Working Capital=Current Assets−Current Liabilities
  • The KPI will be measured as: financial value (e.g. €, $)
  • How to interpret the KPI: higher is better
  • The strategic objective to measure with this KPI: Financial stability
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