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Concept8 min read

Working Capital

The capital tied up in day-to-day operations — receivables plus inventory minus payables. Working capital is often invisible on the P&L but can make or break a growing company's cash position.

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What's inside

  • Definition
  • Why it matters
  • Formula
  • Units & benchmarks
  • Key levers
  • Where it shows up in cases
  • How it's charted
  • Worked example
  • Common traps
  • Industry nuances

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