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

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

With a paucity of working capital and bank lending rates now exceeding 60%, both foreign and domestic firms are stuck in a quagmire.

From Barron's

It now expects peak debt of US$100 million, compared with US$360 million before, to provide a working capital buffer.

From The Wall Street Journal

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

Related Words

• venture capital