What does working capital mean?
Definitions for working capital
work·ing cap·i·tal
This dictionary definitions page includes all the possible meanings, example usage and translations of the word working capital.
Princeton's WordNet
capital, working capitalnoun
assets available for use in the production of further assets
Wiktionary
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
Wikipedia
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.
ChatGPT
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.
Wikidata
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 Contribution
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
Numerology
Chaldean Numerology
The numerical value of working capital in Chaldean Numerology is: 2
Pythagorean Numerology
The numerical value of working capital in Pythagorean Numerology is: 6
Examples of working capital in a Sentence
The trends of eroding profitability and an increasing level of working capital have continued during the first half of the first quarter of 2015, if these trends continue, they will have an adverse impact on the company's profitability and cash flow in 2015.
This is why I recommend that all franchisees have six to nine months of working capital available before buying a franchise.
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.
It's all about working capital and bankers are stressing working capital, liquidity has tightened up considerably in the last year.
Jumia Nigeria CEO Juliet Anammah:
You are tapping into the supply capacity that exists in the country. So you are not dependant exclusively on your working capital to source and bring in retail products.
Translations for working capital
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"working capital." Definitions.net. STANDS4 LLC, 2024. Web. 25 Apr. 2024. <https://www.definitions.net/definition/working+capital>.
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