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.
Credit unions often offer more competitive rates on loans than larger financial institutions, enabling local businesses to readily tap into working capital. Christine Blake, Forbes.com, 7 Aug. 2025 Additionally, seasonal business are better able weather cash flow fluctuations with working capital loans to cover expenses during the slow season. Rohit Arora, Forbes.com, 31 July 2025 More efficient planning, fewer silos between departments, better use of working capital—and significantly less waste. Sharon Goldman, Fortune, 23 July 2025 In conjunction with the acquisition, a new working capital facility equivalent to SEK2.5B has been established and the company will be cancelling its existing €646M guarantee facility. Max Goldbart, Deadline, 17 July 2025 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 20 Aug. 2025.

Legal Definition

working capital

see capital

More from Merriam-Webster on working capital

Last Updated: - Updated example sentences
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