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.

Use this term in a sentence

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

​ Was this Helpful? YES  NO 11 people found this helpful.

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

​ Was this Helpful? YES  NO 10 people found this helpful.

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.

​ Was this Helpful? YES  NO 2 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
working capital loan working drawings