The capital of a business that is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.

Working capital is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Gross working capital equals to current assets. Working capital is calculated as current assets minus current liabilities.

Working capital is the capital required for day to day working.Working capital measures how much  liquid assets a company has available to build its business.In general companies that have a lot of working capital will be more successful since they can expand and improve their operations.

In accounting Term, Working Capital=Current Assets-Current Liabilities.