working capital

noun

: capital actively turned over in or available for use in the course of business activity:
a
: the excess of current assets over current liabilities
b
: all capital of a business except that invested in capital assets

Examples of working capital in a Sentence

Recent Examples on the Web
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That includes plant equipment, engineering, contingency for industrial risk, working capital, required reserve accounts and ongoing operating expenses until the operation turns profitable. Alexandra Harrell, Footwear News, 2 Apr. 2026 Some raised prices beyond the tariff itself because working capital costs rose — tariffs must be paid before goods are sold, tightening cash flow and often requiring short-term borrowing. Sara Albrecht, Chicago Tribune, 9 Mar. 2026 That only became more true in the opening half of 2025-26: working capital fell from minus €357m as of June 2025 to minus €406m at the end of December. Chris Weatherspoon, New York Times, 6 Mar. 2026 The remainder of the money will go for working capital and general corporate purposes. Aldo Svaldi, Denver Post, 25 Feb. 2026 See All Example Sentences for working capital

Word History

First Known Use

1798, in the meaning defined above

Time Traveler
The first known use of working capital was in 1798

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Cite this Entry

“Working capital.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/working%20capital. Accessed 28 Apr. 2026.

Legal Definition

working capital

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