Working Capital in Manufacturing: How to Thrive in Periods of Rising Costs & Explosive Growth

Posted by IMEC on Aug 20, 2019 1:19:48 PM

This is an original article written by Alex Newman, Co-Founder and CEO of Finance Fuel.

A quick definition so that we’re on the same page: Working capital is your cash for day-to-day expenses. More specifically, working capital represents short-term assets available to a business for meeting their financial obligations like payroll, creditors, and suppliers. Cash flow is your ability to generate cash over time, while working capital is a snapshot of what’s on hand.

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