Working capital is the amount of funds required to finance the company''s operations in addition to the capital invested
in the fixed assets. It is the difference between current/short term assets (client receivables, stock, etc.) and current/short term
liabilities (trade creditor, tax and social security liabilities, etc.).
Working Capital=Current Asset- Current Liability
Current assets and liabilities usually exclude cash and equivalents or short term financial debt. A company''s EBIT margin should exceed its working capital to sales ratio in order to be considered self-financing.