working capital

noun

1. the amount of capital needed to carry on a business.
2. Accounting. current assets minus current liabilities.
3. liquid capital assets as distinguished from fixed capital assets.

working capital

noun

1. accounting current assets minus current liabilities
2. current or liquid assets
3. that part of the capital of a business enterprise available for operations

Word History and Origins

Origin of working capital¹

First recorded in 1900–05

Example Sentences

Only its president and treasurer knew that the cordage trust was hobbled by overproduction, a lack of credit and the evaporation of its working capital.

From Los Angeles Times

Money management is something that Griffin is learning through part-time work in the University of California investment office, which controls the UC system’s roughly $170-billion portfolio of investments in retirement, endowment, working capital and cash.

From Los Angeles Times

The university’s $169-billion investment portfolio includes funds for its retirement plan, endowment and working capital.

From Los Angeles Times

It plans to use net proceeds — which it estimated at $198 million assuming an IPO price of $88 — for general corporate purposes including working capital and capital expenditures.

From Seattle Times

The exhibitor also cited in the SEC filing “increased seasonal working capital requirements ... and the resulting cash burn” it has suffered.

From Los Angeles Times

Related Words

• venture capital