working capital

American  

noun

1. the amount of capital needed to carry on a business.

2. Accounting. current assets minus current liabilities.

3. liquid capital assets as distinguished from fixed capital assets.

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working capital British  

noun

1. accounting current assets minus current liabilities

2. current or liquid assets

3. that part of the capital of a business enterprise available for operations

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Etymology

Origin of working capital

First recorded in 1900–05

Example Sentences

Proceeds will be used mainly for working capital, and the transaction is expected to generate a small gain of about 0.4 million ringgit, he adds.

From The Wall Street Journal

The other $40 million would be available to draw as working capital advances to finance his businesses, according to a legal declaration by CIM Managing Director Smith Daley.

From The Wall Street Journal

Farming requires an enormous amount of working capital each year, and crops are subject to the whims of the weather.

From Barron's

After several years of that, “many operations are now working with very thin liquidity and a tougher environment for securing working capital,” Bass said.

From MarketWatch

In Nvidia’s case, there has been a jump in working capital as rapid sales growth has led to immediate costs, while payments from customers lag behind.

From The Wall Street Journal

Related Words

• venture capital