Working Capital is basically an indicator of the short-term financial position of an organization and is also a measure of its overall efficiency. It is obtained by subtracting the current liabilities from the current assets. This ratio indicates whether the company possesses sufficient assets to cover its short-term debt. It indicates the liquidity levels of companies for managing day-to-day expenses and covers inventory, cash, accounts payable, accounts receivable and short-term debt that is due and derived from several company operations such as debt and inventory management, supplier payments and collection of revenues.