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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