What is Current Capital?
Current capital is often referred to as working capital. Essentially, current capital is the liquid financial assets that a company has on hand to manage the day to day operations of the company. Current capital is understood to be free of any other obligation, and is readily accessible at all times. One important aspect in determining the amount of current capital is to allow for the necessity of covering any liabilities that are outstanding at the present time. For example, if a company currently has $50,000.00 US Dollars (USD) in the operating fund, and has current liabilities that come to $20,000.00 USD, then the current capital that is on hand to devote to the operation is $30,000.00 USD. In other words, cash on hand is not necessarily the same as current capital, unless there are no current liabilities to consider. Assessing the status of current capital is important to any business. The presence of current capital at any given time is a strong indicator of the overall financial
