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  1. Dictionary
    working capital

    noun

    • 1. the capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.
  2. Jun 27, 2024 · Working capital is the difference between a company's current assets and liabilities, and it measures its liquidity and short-term financial health. Learn how to calculate working capital, what it means for different industries, and what factors can affect its value.

  3. Dec 27, 2022 · Working capital is the difference between a company's current assets and liabilities, indicating its short-term financial health and liquidity. Learn how to calculate working capital, why it's useful, and how to manage it with ratios and factors.

  4. Aug 21, 2022 · Working capital is a financial metric calculated as the difference between current assets and current liabilities. Positive working capital means the company can pay its bills and invest to spur business growth.

  5. Working capital—also known as net working capital—is a measurement of a business’s short-term financial health. Simply put, it indicates your liquidity or ability to pay your bills. You can find it by taking your current assets and subtracting your current liabilities, both of which can be found on your balance sheet.

  6. Jun 29, 2024 · Working capital is the difference between current assets and current liabilities, and measures a company's short-term liquidity and operational efficiency. Learn how to calculate, analyze and optimize working capital with this comprehensive guide, including a formula, a calculator and examples.

  7. Nov 30, 2020 · Working capital is the money available to a company for its day-to-day operations. Learn how to calculate working capital, what it means for a company's liquidity and efficiency, and how it differs from net working capital and cash flow.

  8. Working capital is the difference between current assets and current liabilities. It is not to be confused with trade working capital (the latter excludes cash). The basic calculation of working capital is based on the entity's gross current assets.