Working capital

Defined as the difference in current assets and current liabilities (excluding short-term debt). Current assets may or may not include cash and cash equivalents, depending on the company. The New York Times Financial Glossary

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working capital working capital capital

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   Working capital usually refers to net working capital and is the resource that a company can use to finance day-to-day operations. It is calculated by taking current liabilities from current assets.
   ► See also Assets/Liabilities.

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working capital UK US noun [U] (also circulating capital, also operating capital)
ACCOUNTING, FINANCE, WORKPLACE the money that a company needs to operate and produce its goods or provide its services, for example to make payments to employees, suppliers, etc. before it has been paid by customers: »

Companies need large amounts of working capital in order to operate and grow.

»

The joint venture will cost the group just $200,000 in working capital.

»

a reduction/shortfall/increase in working capital

provide/raise working capital »

An additional £820m revolving credit facility will provide working capital.


Financial and business terms. 2012.

Look at other dictionaries:

  • working capital — see capital Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. working capital …   Law dictionary

  • working capital — working assets The capital that is used to finance the day to day operations of a company. Working capital is part of the balance sheet and is calculated as the difference between current assets and current liabilities. The size and composition… …   Accounting dictionary

  • working capital — n [U] the money that is available to be used for the costs of a business →↑venture capital …   Dictionary of contemporary English

  • working capital — ► NOUN ▪ the capital of a business which is used in its day to day trading operations …   English terms dictionary

  • working capital — noun uncount BUSINESS the money that a business has available for immediate use …   Usage of the words and phrases in modern English

  • working capital — n. 1. Accounting the excess of cash and liquid assets over current liabilities 2. cash and other assets needed for the day to day operation of a business …   English World dictionary

  • Working capital — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • working capital — the excess of current assets over current liabilities of any business at any time. Glossary of Business Terms In accounting and finance, used to describe the amount, if any, by which a business s current assets exceed its current liabilities.… …   Financial and business terms

  • Working Capital — Zum Umlaufvermögen (oder Betriebskapital) eines Unternehmens gehören Vermögensgegenstände, die umlaufen beziehungsweise umgesetzt werden sollen, deren Bestand sich also durch Zu und Abgänge häufig ändert. Sie befinden sich nur kurze Zeit im… …   Deutsch Wikipedia

  • Working Capital — A measure of both a company s efficiency and its short term financial health. The working capital ratio is calculated as: Positive working capital means that the company is able to pay off its short term liabilities. Negative working capital… …   Investment dictionary

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