Working Capital
Current assets minus current liabilities; funds for day-to-day operations.
Formula
Working Capital = Current Assets − Current Liabilities
Real World
During the 2020 COVID lockdowns, Primark had zero online sales but still held £1.5bn of inventory, creating severe working capital pressure as cash inflows stopped while obligations continued.
Exam Focus
Quote actual figures from any data provided and state whether working capital is positive or negative before analysing implications.
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