Working capital (abbreviated
WC) is a financial metric which represents
operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Gross working capital equals to current assets. Working capital is calculated as
current assets minus
current liabilities. If current assets are less than current liabilities, an entity has a
working capital deficiency, also called a
working capital deficit.