Working capital, also known as work

Working capital, also known as working capital, is the capital required by an enterprise to maintain its daily commercial activities [6]. There are currently three different working capital concepts. The first is working capital in the strict sense, in which working capital is the difference, that is, the value obtained from the company's total current assets minus all the company's current liabilities for a period of time, also called net working capital. Net working capital compares the company's short-term payment requirements with the actual capital capacity within a certain period of time, which may reflect the company's financial strength and liquidity. Net working capital compares a company's short-term payment requirements with actual capital capacity over time, which may reflect the company's financial strength and liquidity. The second explanation is the general concept of working capital, also known as total working capital, which refers to all funds used by businesses for current assets, i.e. current assets, including cash and cash equivalents, the inventory and credits. This understanding can not only reflect that working capital is closely related to each link in the corporate copy, but can also effectively study the liquidity and turnover of assets. The third understanding is that working capital is considered to be the sum of the company's current assets and current liabilities. The sum here does not just add all of the company's current assets and current liabilities, but reflects these two elements. According to the agreement, the relationship between working capital management also includes current asset management and current liability management. The article uses a third understanding of working capital, but the goal is to find current business activities and improve liquidity management performance by managing current assets and liabilities. but it reflects these two elements. According to the agreement, the relationship between working capital management also includes current asset management and current liability management. The article uses a third understanding of working capital, but the goal is to find current business activities and improve liquidity management performance by managing current assets and liabilities. but it reflects these two elements. According to the agreement, the relationship between working capital management also includes current asset management and current liability management. The article uses a third understanding of working capital, but the goal is to find current business activities and improve liquidity management performance by managing current assets and liabilities.