Working capital commonly means current assets minus current liabilities, showing the net resources tied to near-term operations.
How it works in retail
Retail current assets can include cash, receivables and inventory, while current liabilities include amounts due to suppliers and other short-term obligations.
A retail example
A retailer has $120,000 in current assets and $80,000 in current liabilities. Its net working capital is $40,000.
What to keep in mind
Working capital is not the same as cash available today. Slow-selling inventory or overdue receivables may be difficult to convert into cash quickly.
Sources & further reading
Examples are illustrative. Terminology and measurement conventions can vary by business and market.