Working capital is a vital component of financial analysis, but it can't give the whole picture. Most businesses should use multiple metrics and tracking tools to analyze finances for a complete picture of a company's performance and future projections.nnFor example, working capital management cannot predict future financial outcomes. Market conditions, branding, competitors, and market saturation are all components you must balance outside of managing your working capital.nnIt also doesn't improve or guarantee profitability. It can't increase market demand for your products or services, bring in new customers, or help retain existing customers. To improve the bottom line, businesses must still focus on growing sales, cost control, and other factors.