Working capital, the lifeblood of every business, refers to the difference between a company's current assets and current liabilities. It is a critical measure that provides insight into a company's operational efficiency, liquidity, and short-term financial health.
Global working capital has improved by 9.4% since 2017, so companies are increasingly focusing on working capital optimization. Understanding how to manage working capital effectively can help you secure reliable financing and provide long-term value for your business.
Ecommerce sellers need ample working capital to meet customer demand, particularly during peak seasons. In this guide, you'll learn essential concepts related to working capital and how it impacts your business as an ecommerce seller.