Working Capital
Definition
The excess of current assets over current liabilities, representing the short-term liquidity available to a business for its day-to-day operations. Positive working capital indicates good short-term financial health.
Example
"If Current Assets = ₹5 Lakhs and Current Liabilities = ₹3 Lakhs, Working Capital = ₹2 Lakhs, meaning the firm can comfortably pay its short-term debts."