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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Apparel brands gain speed to market, home and lifestyle retailers improve working capital efficiency and specialty retailers reduce markdown exposure. Arthur Zaczkiewicz, Footwear News, 7 May 2026 The hospital is issuing the bonds through the California Public Finance Authority, and proceeds will fund working capital, refinance outstanding debt, and cover issuance costs. Nic Querolo, Bloomberg, 20 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 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 18 May. 2026.

Legal Definition

working capital

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