Definitions for working capital
work·ing cap·i·tal

Princeton's WordNetRate this definition:0.0 / 0 votes

1. capital, working capitalnoun

   assets available for use in the production of further assets

WiktionaryRate this definition:0.0 / 0 votes

1. working capitalnoun

   A financial metric that is a measure of current assets of a business that exceeds its liabilities and can be applied to its operation

WikipediaRate this definition:0.0 / 0 votes

1. Working 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.

ChatGPTRate this definition:0.0 / 0 votes

1. working capital

   Working capital is a financial metric used to measure a company's operational liquidity, efficiency, and short-term financial health. It is the difference between a company's current assets, such as cash, accounts receivable, and inventories of raw materials and finished goods, and its current liabilities, such as accounts payable. Positive working capital indicates the company has enough assets to cover its short-term debts and expenses, while negative working capital suggests the opposite.

WikidataRate this definition:0.0 / 0 votes

1. Working capital

   Working capital is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Net working capital is calculated as current assets minus current liabilities. It is a derivation of working capital, that is commonly used in valuation techniques such as DCFs. If current assets are less than current liabilities, an entity has a working capital deficiency, also called a working capital deficit. A company can be endowed with assets and profitability but short of liquidity if its assets cannot readily be 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.

Editors ContributionRate this definition:0.0 / 0 votes

1. working capital

   The accurate and specific cash or money for the daily running of a business.

   Working capital is a vital part of the running of the business.

   
   

   Submitted by MaryC on March 18, 2020  

Matched Categories

1. • Assets

How to pronounce working capital?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say working capital in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of working capital in Chaldean Numerology is: 2

2. Pythagorean Numerology

   The numerical value of working capital in Pythagorean Numerology is: 6

Examples of working capital in a Sentence

1. Toby Sembower:

   Creating a detailed budget will force you to make decisions on what’s most important, and what’s not, in spending that money, costs can get out of hand very quickly if you’re not adhering to a budget, which could leave you short on working capital for opportunities (or costly problems) that may arise.

2. Marc Niederkorn:

   As soon as you are talking credit card, you're going to have to wait, getting money in five seconds is a value proposition because it cuts working capital.

3. David Miller:

   It's all about working capital and bankers are stressing working capital, liquidity has tightened up considerably in the last year.

4. Chief Executive Officer Lukas Braunschweiler:

   We're hedging our inter-company net exposure on working capital but we didn't hedge enough on these currencies, usually, they haven't been a big factor. But now, they've become a big factor.

5. Josh Brown:

   This is why I recommend that all franchisees have six to nine months of working capital available before buying a franchise.

References

1. ^ Princeton's WordNet
   http://wordnetweb.princeton.edu/perl/webwn?s=working capital
2. ^ Wiktionary
   https://en.wiktionary.org/wiki/Working_Capital
3. ^ Wikipedia
   https://en.wikipedia.org/wiki/Working_Capital
4. ^ ChatGPT
   https://chat.openai.com
5. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=working capital