working capital
Definition
Current assets minus current liabilities. Working capital measures how much in liquid assets a company has available to build its business. The number can be positive or negative, depending on how much debt the company is carrying. In general, companies that have a lot of working capital will be more successful since they can expand and improve their operations. Companies with negative working capital may lack the funds necessary for growth. also called net current assets or current capital.
Cite this definition
Related Terms
capital, commercial loan
'working capital
' appears in the definitions of these terms on BusinessDictionary.comworking capital turnover, days working capital, net income to working capital ratio, short term debt to working capital, application of funds, and
Related Research Articles from the InvestorGuide.com University
Introduction to Budgeting Learn how to get your financial house in order. Here we describe the overall approach we recommend: choose a system, calculate your current income and expenses and compare the two, set specific goals and monitor your progress as you work toward them.

Goals and Progress Continuing the discussion of our simple 7 step budgeting process, this article includes information on how to set goals, and consequently how to achieve them.

Saving Have extra money lying around? This article tells you why you should save and how much you should save, with specific emphasis on creating an emergency fund, and when to invest in high-risk, high-return ventures.

Featured Sponsor
GE Commercial Finance - The only working capital expert part of a Fortune 5 industrial giant.
|