10 Difference Between Working Capital And Fixed Capital

1. Fixed capital refers to the investment of the enterprise in long term assets of the company. Working capital means the capital invested in the current assets of the company. 2. Fixed Capital: Not at all liquid. Working Capital: Very much liquid. 3. Fixed capital is required for establishment of business. Working capital is required to utilize fixed assets of the company. 4. Fixed capital is not needed frequently in business.  Working capital is needed frequently in business to complete its daily transactions like buying of raw materials, paying wages and so forth. 5. Working capital investment is financed through short-term debt while fixed capital investment is financed through long-term debt.  6. Serves: Fixed Capital: Strategic objectives Working Capital: Operational objectives 7. Conversion: Fixed Capital: Can not be converted in to cash or kind immediately. Working Capital: Can be converted in to cash or kind immediately.