working capital


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 However, the document showed that SkyWater aims to raise $75 million to be used for working capital and general purposes. Evan Ramstad, Star Tribune, "SkyWater, Minnesota's largest chipmaker, will jump into the IPO frenzy," 23 Mar. 2021 This is a key consideration as the top reason for any business failure, franchise or independent, is lack of working capital to meet the necessary investment. Jeff Bevis, Forbes, "Thinking About A Franchise In 2021? Three Hidden Gems In The Latest Franchise Satisfaction Report," 26 Feb. 2021 Stripe has started offering working capital and accounts to merchants, in partnership with banks. The Economist, "Scaling the peak America used to be behind on digital payments. Not any more," 20 Mar. 2021 The money is split between growth equity and working capital, the company announced. William Thornton |, al, "Birmingham financial company raises $15.5 million," 16 Mar. 2021 All too often, invention and agility become unwanted sources of risk for a stretched set of resources and working capital. Martin Taylor, Forbes, "How Real-Time Customer Engagement Could Provide A CX Crystal Ball," 9 Mar. 2021 In doing so, the retailer is emerging with its 290 or so stores intact, $450 million less in debt, a bunch of new working capital and the same ownership. Warren Shoulberg, Forbes, "Belk Becomes The In-And-Out Of Bankruptcy," 25 Feb. 2021 Adequate working capital and necessary investment funds are vital starting any type of new business; however, this recent report exemplifies success is not dependent on the most expensive businesses to start! Jeff Bevis, Forbes, "Thinking About A Franchise In 2021? Three Hidden Gems In The Latest Franchise Satisfaction Report," 26 Feb. 2021 Since then, San Diego Community Power has also taken out a $5 million bank loan backed up by private collateral and has another $30 million working capital loan with initial revenues to back purchase of power. San Diego Union-Tribune, "La Mesa readying to launch community choice power program," 24 Feb. 2021

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.

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First Known Use of working capital

1798, in the meaning defined above

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Time Traveler for working capital

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The first known use of working capital was in 1798

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Statistics for working capital

Last Updated

10 Apr 2021

Cite this Entry

“Working capital.” Dictionary, Merriam-Webster, Accessed 16 Apr. 2021.

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More Definitions for working capital

working capital


English Language Learners Definition of working capital

business : money that is available for use while running a business

working capital

Legal Definition of working capital

— see capital

More from Merriam-Webster on working capital

Nglish: Translation of working capital for Spanish Speakers Encyclopedia article about working capital

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