Working Capital as a residue of the Current area leads us to the understanding that it is current natured. Excess of current assets over current liabilities implies a part of the current assets is what is remaining and thus it can be said that working capital is current natured.
Working capital as a residue of the Non-Current area leads us to the understanding that it is Non-Current natured. Excess of Non-Current liabilities over Non-Current assets implies part of the Non-Current liabilities (capital) is what is remaining and thus it can be said that working capital is Non-Current natured.
Working capital is thus dual natured. It is also capital and in this regard it is to be considered as long term capital belonging to the non-current area. Every rupee of a liability is supported by a rupee of an asset and the assets that support working capital are current natured.
