working capital Definition

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.

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working capital is ...
... part of the Accounting subject.

... #3 on our list of the most popular terms.

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working capital appears in these other terms

working capital loan

working capital appears in the definitions of these other terms on BusinessDictionary.com

days working capital, working capital turnover, net income to working capital ratio, short term debt to working capital, operating capital, and

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