What is positive working capital mean?

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1154499

2026-05-02 02:45

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Positive working capital refers to a financial condition where a company's current assets exceed its current liabilities. This indicates that the company has sufficient short-term assets to cover its short-term obligations, which is essential for maintaining liquidity and operational efficiency. Positive working capital is generally seen as a sign of financial health, as it enables the company to invest in growth opportunities and manage unexpected expenses.

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