- Working capital
- Defined as the difference in current assets and current liabilities (excluding short-term debt). Current assets may or may not include cash and cash equivalents, depending on the company. The New York Times Financial Glossary
* * *working capital working capital ➔ capital
* * *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.
* * *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 capitalprovide/raise working capital »
An additional £820m revolving credit facility will provide working capital.
Financial and business terms. 2012.