Working Capital - a Part of Fixed Capital

Working capital is one of basic financial categories and constitutes materialization of fixed capital in current assets. Fixed capital with its material expression on the assets side circulates much faster in current assets than in fixed assets. The speed of circulation determines enterprise profitability. On the other hand, the range of materialization of fixed capital in current assets impacts liquidity of the business. Working capital results from the cash flow from shareholders and creditors, has an influence on enterprise goodwill.