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

Since September, 777 has injected more than £150 million ($189 million) into Everton to cover working capital requirements and allow construction of a nearly 53,000-seat stadium in Liverpool’s Bramley docks. —David Hellier, Fortune, 23 Mar. 2024

The gross proceeds raised from the sale of the units will be used to primarily support inventory purchases and business expansion, as well as general working capital purposes. —Fort Worth Star-Telegram, 22 Mar. 2024

The decision of the board came amidst concern about working capital management, Reuters reported. —Sheryl Estrada, Fortune, 1 Mar. 2024

Does the buyer have working capital to support the business? —Brian Slipka, Forbes, 27 Feb. 2024

Among other things, the proposal also asks that the teams partner with a financial institution to offer working capital loans to small businesses run by women, minorities, veterans and disabled veterans. —Mike Hendricks, Kansas City Star, 27 Feb. 2024

Specialized investors and lenders provide venture debt to startup companies, which will be used to fund their working capital and growth and extend the runway between funding rounds. —William Mullane, USA TODAY, 16 Jan. 2024

Crowdfunding is all but essential for most indie game makers, providing them working capital, feedback, and word-of-mouth marketing at the same time. —Kevin Purdy, Ars Technica, 23 Dec. 2023

But the company’s presentation to investors at that time indicated that its budget called for the company to obtain a working capital loan of up to $40 million secured by a first lien on the company’s accounts receivable. —Addie Morfoot, Variety, 20 Dec. 2023

Word History

First Known Use

1798, in the meaning defined above

Legal Definition

working capital

see capital