The capital required for the company to run its day to day operations. The funds invested in current assets are termed as working capital. It is the fund that is needed to run the day-to-day operations. Generally, working capital refers to the current assets of a company that is changed from one form to another in the ordinary course of business, i.e. from cash to inventory, inventory to work in progress (WIP), WIP to finished goods, finished goods to receivables and from receivables to cash.