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What is "working capital"

Longman Dictionary of Contemporary English
working capital
noun
EXAMPLES FROM CORPUS
▪ Burroughs will use the money as working capital and to reduce debt.
▪ Has it enough working capital to enable it to wait out this period without becoming insolvent?
▪ He is currently preparing a plan to unlock more working capital by the New Year.
▪ It wants the cash to repay debt and for capital expenditures and for working capital.
▪ Minimizing the investment in net working capital has important implications for the sales and profitability of the firm.
▪ Most significant was an increase in working capital and an increase in labour inputs consequent on the technological changes introduced.
▪ This chapter deals with the manag & ment of these major components of net working capital.
▪ This permanent growth in net working capital requires a source of permanent financing.
Wiktionary
working capital

n. (context business accounting English) A financial metric that is a measure of current assets of a business that exceeds its liability and can be applied to its operation

WordNet
working capital

n. assets available for use in the production of further assets [syn: capital]

Wikipedia
Working capital

Working capital (abbreviated WC) is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Gross working capital equals to current assets. Working capital is calculated as current assets minus current liabilities. If current assets are less than current liabilities, an entity has a working capital deficiency, also called a working capital deficit.

A company can be endowed with assets and profitability but short of liquidity if its assets cannot readily be converted into cash. Positive working capital is required to ensure that a firm is able to continue its operations and that it has sufficient funds to satisfy both maturing short-term debt and upcoming operational expenses. The management of working capital involves managing inventories, accounts receivable and payable, and cash.