Working capital is a measure of a company's liquidity that is equal to current assets minus current liabilities. The company's working capital is important as a measure of the resources that are available for the company's operations in the short term. A company with a large positive amount of working capital will have the cash necessary for needs that may arise in the near term. A company with a deficit of working capital will likely need to finance its activities with borrowing or otherwise. An alternative measure that is sometimes used is the "current ratio," which is current assets divided by current liabilities. This ratio is a measure of the company's ability to pay it short-term debts in the near future.