working capital



  • The funds in addition to fixed capital and land investment which a company must contribute the project (excluding startup expense) to get the project started and meet subsequent obligations as theycome due. working capital includes inventories, cash and accounts receivable minus accounts payable. Characteristically, these funds can be converted readilyf into cash. Working capital is normally assumed recovered at the end of the project.
  • The excess of current assets over current liabilities. Cash and other liquid assets.


  • noun capital in the form of cash, stocks and debtors (less creditors) used by a company in its day-to-day operations (normally defined as the excess of current assets over current liabilities).

Information & Library Science

  • noun money that is available immediately and not tied up in investments, property or equipment