What is working capital?
The Challenge
Define the term "working capital" and what it tells a company about its financial situation. Feel free to do this either in your head or on a sheet of paper.
Why do this?
Even if your role has nothing to do with finance, it's useful to have a basic understanding of financial terms. (By the way, if you noticed that this challenge is similar to another one you've done, you're right. It is! We developed a whole series on financial management, and this challenge is part of that series.)
Knowing how to navigate a company's finances will reveal information about it that you might otherwise never learn. It will also make you more adept at managing budgets and financial goals for your team or department.
What’s next?
If you didn't know the answer to the question asked in the first part of the challenge, take 10 minutes to educate yourself about it online.