The working capital of a business is the ability to pay off short-term debts and expenses. The daily expenses generated by the standard operation of a company must be met with available funds. Failure to meet this need will inevitably result in the closure of a company.
The working capital is based on the current cash and cash equivalents a company possesses and set against current liabilities.
Does this mean an unworking capital is just money that does nothing and sits in what I can assume is a box, but no one is allowed to touch it? I think that’s what it is.