What does operating capital mean?
Definitions for operating capital
op·er·at·ing cap·i·tal
This dictionary definitions page includes all the possible meanings, example usage and translations of the word operating capital.
Princeton's WordNet
operating capitalnoun
capital available for the operations of a firm (e.g. manufacturing or transportation) as distinct from financial transactions and long-term improvements
Wikipedia
operating capital
Working capital (WC) is a financial metric which represents operating liquidity available to a business, organisation, or other entity, including governmental entities. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Gross working capital is equal to current assets. Working capital is calculated as current assets minus current liabilities. If current assets are less than current liabilities, an entity has a working capital deficiency, also called a working capital deficit and negative working capital.A company can be endowed with assets and profitability but may fall short of liquidity if its assets cannot be readily converted into cash. Positive working capital is required to ensure that a firm is able to continue its operations and that it has sufficient funds to satisfy both maturing short-term debt and upcoming operational expenses. The management of working capital involves managing inventories, accounts receivable and payable, and cash.
ChatGPT
operating capital
Operating capital, also known as working capital, refers to the short-term funds a company uses for its day-to-day operations, such as purchasing inventory, covering overhead costs, and paying employees. It is calculated by subtracting current liabilities from current assets. Operating capital is a measure of a company's operational efficiency and short-term financial health. If a company does not have enough operating capital, it may struggle to maintain its daily operations.
Matched Categories
Numerology
Chaldean Numerology
The numerical value of operating capital in Chaldean Numerology is: 3
Pythagorean Numerology
The numerical value of operating capital in Pythagorean Numerology is: 5
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"operating capital." Definitions.net. STANDS4 LLC, 2024. Web. 24 Apr. 2024. <https://www.definitions.net/definition/operating+capital>.
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