working capital

noun

Definition of working capital

: 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 Federal law enforcement authorities said Janine and Gerard Carbonaro were given $109,000 under the federal CARES act as working capital to support the Hair Attraction Design Team in Monroe, a business operated by Janine Carbonaro. Edmund H. Mahony, courant.com, 30 Mar. 2022 How to define net working capital and how to set the target are important deal terms that directly impact value but are often neglected in the flurry of the dealmaking process. Jay Jung, Forbes, 15 Oct. 2021 Equipment leasing benefits businesses of all sizes, from startups and small businesses that have trouble getting traditional bank loans to more established companies looking to invest working capital in other areas. WSJ, 5 May 2022 Spending time really thinking through your payment schedule and cash flow is critical in preserving working capital and safeguarding your business’ future success. Expert Panel, Forbes, 15 Nov. 2021 Have working capital and additional sources of income. Terry Painter, Forbes, 5 Jan. 2022 Those are the largest pieces of working capital, and those are the pieces that many people in the organization can directly affect. Kristin Broughton, WSJ, 24 Mar. 2022 Najafi has partnered with The Forest Road Company as its lender to repay STX Entertainment’s outstanding debt load and provide working capital going forward. Etan Vlessing, The Hollywood Reporter, 22 Mar. 2022 In such cases, working capital is either locked up in wrong-sized inventories or obliterated, leading to lower profitability and earnings per share. Seth Page, Forbes, 3 Jan. 2022 See More

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'working capital.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of working capital

1798, in the meaning defined above

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Time Traveler for working capital

Time Traveler

The first known use of working capital was in 1798

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Dictionary Entries Near working capital

working/business lunch

working capital

working card

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Statistics for working capital

Last Updated

28 May 2022

Cite this Entry

“Working capital.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/working%20capital. Accessed 30 Jun. 2022.

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More Definitions for working capital

working capital

Legal Definition of working capital

— see capital

More from Merriam-Webster on working capital

Nglish: Translation of working capital for Spanish Speakers

Britannica.com: Encyclopedia article about working capital

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