circulating capital

American  

noun

1. the portion of capital goods that consists of goods in process, inventories of finished goods, and raw materials.

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Etymology

Origin of circulating capital

First recorded in 1770–80

Example Sentences

See Examples For:

circulating capital

If wages rose 10 per cent. and consequently 10 per cent. more circulating capital were required in each trade, it would equally affect both employments.

From On The Principles of Political Economy, and Taxation by David Ricardo

Again two manufacturers may employ the same amount of fixed, and the same amount of circulating capital; but the durability of their fixed capitals may be very unequal.

From On The Principles of Political Economy, and Taxation by David Ricardo

But these changes in fixed capital are comparatively few; whereas the whole or nearly the whole of the circulating capital is changed every year or two.

From Political economy by W. Stanley Jevons

Flour is soon eaten up, and is circulating capital.

From Political economy by W. Stanley Jevons

In the future the planned profit level for enterprises, differentiated by branch and subbranch, will be calculated in relation to the fixed and circulating capital employed rather than in relation to cost.

From Area Handbook for Romania by Donald W. Bernier