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

Shell also flagged a hit of up to $15 billion in working capital.

From MarketWatch • Apr. 8, 2026

Morgan Stanley is the lead bookrunner for the facility, which Cipher will use to support working capital, fund growth projects, and improve liquidity.

From Barron's • Mar. 25, 2026

“Rising working capital intensity at Lilly, headline price pressures, and rebate dynamics at both companies indicates to us that the pricing dynamics are likely to get worse,” the analyst wrote.

From Barron's • Mar. 17, 2026

In her new role, Coddington said she plans to strengthen Palmetto’s profit metrics, improve working capital and tighten financial controls.

From The Wall Street Journal • Feb. 5, 2026

We had no working capital, as I think you must have known.

From The City of Numbered Days by Lynde, Francis

Related Words

• venture capital