Working Capital Definition

noun
The excess of cash and liquid assets over current liabilities.
Webster's New World
Cash and other assets needed for the day-to-day operation of a business.
Webster's New World
Synonyms:
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other
The amount by which current assets exceed current liabilities. Working capital is used to fund the operations of the company and pays for inventory purchases, as well as for goods used in the production process; working capital also provides money to expand sales. A shortage of working capital can lead to a company’s bankruptcy. Working capital is a good measure of liquidity because it looks at debts that must be paid within one year or less.
Webster's New World Finance
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