working capital requirement


The amount of working capital a company determines it must maintain in order to continue to meet its costs and expenses. The working capital requirement will be different for each company, depending upon many factors such as how frequently the company receives earnings and how high their expenses are.

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You may want to figure out what your working capital requirement will be and make sure you can afford it.

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The federal government investigated my company's financial subsidiary over concerns that it had allowed our working capital requirement to drop below regulatory levels.

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For a company to continue to be profitable to not only it's investors but to the company itself, it will need to determine its working capital requirement to see how much money they will need to have on hand to operate profitable.

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