# Working capital

> Working capital is a liquidity and working-capital metric, calculated as Current assets − Current liabilities. Absolute, not a ratio.

Source: https://lopifi.com/glossary/working-capital
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is working capital?** Working capital is a liquidity and working-capital metric, calculated as Current assets − Current liabilities.

## Formula

`Current assets − Current liabilities`

## Note

Absolute, not a ratio

- **Category:** Liquidity & working capital
- **Specified in:** [Metric definitions](https://lopifi.com/md/docs/domain/10-metrics)