Working capital is a measure of a company's profitability.

Question

Quizplus · Accepted Answer

Working capital refers to the current assets and current liabilities of a company, and it reflects the company's ability to meet its short-term obligations. While working capital management is important for a company's financial health, it is not a direct measure of profitability. Profitability is measured by metrics such as net income, gross profit margin, return on assets, and return on equity.

Working Capital Is a Measure of a Company's Profitability