Working-capital meaning

The assets of a business that can be applied to its operation.
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The amount of current assets that exceeds current liabilities.
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Cash and other assets needed for the day-to-day operation of a business.
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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.
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(business, accounting) A financial metric that is a measure of current assets of a business that exceeds its liabilities and can be applied to its operation.
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The excess of cash and liquid assets over current liabilities.
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Working-capital Sentence Examples

  • In order to determine the probable profit and life of the mine a definite scale of operations must be assumed, the money required for development and plant and for working capital must be estimated, the methods of mining and treating the ore determined, and their probable cost estimated.

  • With regard to the latter, however, the requirements of industry were studied to a certain extent, in that the withdrawal of money from the banks was allowed, so far as it was necessary for paying wages and for the provision of working capital.

  • By agreement with the Ministry of the Interior, as soon as the reserve exceeded by io% the working capital (which was partly in shares, partly in bank advances) the company was to sell food under cost price; and this actually happened.

  • Fade Launch of actnow flex project First step toward making Cornwall the flexible working capital of the UK.

  • mature planned growth necessarily involves an increase in stocks of maturing cheese which is reflected in the working capital position.

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Words near working-capital in the Dictionary