- 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. Also used more loosely to describe the funds a firm has available to run its day-to-day business affairs. American Banker Glossary————Defined as the difference between current assets and current liabilities. There are some variations in how working capital is calculated. Variations include the treatment of short-term debt. In addition, current assets may or may not include cash and cash equivalents ( cash-equivalent items, depending on the company. Bloomberg Financial Dictionary————See net current assets. Dresdner Kleinwort Wasserstein financial glossary————The capital used by the company to run its day-to-day operations. It is the difference between current assets and current liabilities of the business. London Stock Exchange Glossary
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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.* * *
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.
