ALSTOM defines the working capital as the current assets less current liabilities and provisions for risks and charges. Working capital represents the balance between entries and resources of the Company.
Comprises current assets less current liabilities. A measure of the long-term investment required to finance the day-to-day operations at a given level of activity.
Current assets minus current liabilities. also called net current assets or current capital. see also capital.
Sum of inventories and trade receivables less trade payables.
The excess of all current assets over the total of all current liabilities. The greater the working capital, the easier it is for a company to meet its current (usually one year or less) obligations.
A firm's investment in short-term assets-cash, short-term securities, accounts receivable and inventories. Gross working capital comprises a firm's total assets. Net working capital is current assets minus current liabilities. If the term working capital is used without further qualification, it generally refers to gross working capital.
Excess of current assets over current liabilities used to finance current business activities.
FINANCE. Otherwise known as net current assets, this shows the ability of the business to pay its short-term liabilities.
Means the difference obtained by subtracting current liabilities from current assets. [Utah Rules].
or funds - the stock of money (cash and liquid resources), required by a business to continue producing or trading.
Also called net current assets, is the capital available for conducting day-to-day operations of an organisation; normally the excess of current assets over current liabilities.
Surplus of current assets over current liabilities which provides the net resources with which a company can finance day to day operations.
The amount of money that a company has tied up in funding its day to day operations.... more on: Working capital
In accounting and finance, used to describe the amount, if any, by which a business's current assets exceed its current liabilities. Also used more loosely to describe the funds a firm has available to run its day-to-day business affairs.
The excess of current assets over current liabilities. It is the capital immediately available for continued operation of the business.
Cash and short-term assets that can be used for current needs -- bills, etc.
Capital needed for the month-to-month running of a farm as distinct from investment capital. Specified in accounting terms as current assets less current liabilities.
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Working capital is defined as the funds available to meet current obligations of the business. Working capital usually is calculated as the amount that Current Assets exceeds Current Liabilities [link to balance sheet one.xls]. Working Capital is recorded on the financial statement called Statement of Changes in Financial Position.
assets available for use in the production of further assets
Funds invested in a company's cash, accounts receivable, inventory and other current assets. This figure enables one to evaluate a company's ability to repay its short-term debt.
The sum of trade debtors and inventory less trade creditors. It is sometimes also calculated by current assets less current liabilities.
money to be used in the daily operation of the business; calculated by subtracting current liabilities from current assets in the balance sheet
The net amount of current assets and current liabilities. This is equivalent to a company's liquid assets.
This is represented by current assets less current liabilities on a company's balance sheet.
Technically, means current assets and current liabilities. The term is commonly used a synonymous with net working capital. The term often also is used to refer to all short-term funding needs for operations (excluding debt service and fixed assets). A company's investment in current assets that are used to maintain normal business operations. Net working capital, which is the excess of current assets over current liabilities is also interchangeable with working capital. Both reflect the resources in circulation to meet operating needs and obligations as they come due.
The excess of current assets less current liabilities.
current assets less current liabilities. See also Current Assets, Current Liabilities, and Net Working Capital.
Finance term referring to the current assets available to a business after subtracting all current liabilities. For more information, see the "Creative Real Estate Investment Guide: Gathering Your Resources" article in the "Real Estate Investing" section.
The funds an organisation has available for conducting its day-to-day operations. Usually defined as Current Assets less Current Liabilities. Also known as Net Current Assets.
Liquid assets available for conducting the daily affairs of a business.... read full article
Current assets minus current liabilities, shows a company's ability to meet its short-term obligations.
current assets minus current liabilities. In most businesses the major components of working capital are cash, accounts receivable, and inventory minus accounts payable. As a business grows it will have larger accounts receivable and more inventory. Thus the need for working capital will increase.
The short term cash resources of a business comprising chiefly cash, debtors, work in progress and stock less current liabilities.
The funds in a company's current asset accounts: cash, accounts receivable and inventory. Net working capital is equal to current assets minus current liabilities and accounts payable. A company's liquidity is measured using working capital ratios and related calculations. Banks, creditors, investors, analysts and rating agencies use these measures to assess a company's credit worthiness and its short-tem financial health.
The lifeblood of a company, it is the money the company has sloshing around, ready to stick into the business. Take the total current assets and subtract the total current liabilities. (Because they are "current," this means they will either be converted into cash shortly or need to be paid shortly.) In calculating a company's working capital, you compare money the company has at its disposal to money it needs to pay out in the near future.
Current assets minus current liabilities. It represents the funds tied up in the costs of production before the money is received from sales.
The liquid resources a company has to meet day-to-day expenses of operation; defined as the excess of current assets over current liabilities.
Comprises deposits, issued bonds, subordinate loan capital and equity capital. See also category 1, 2, 3 or 4 banking institution.
Capital in current use in the operations of a business. The excess of its current assets over its current liabilities is generally referred to as the company's working capital. The amount of working capital has long served as a credit test and often as a measure of debt paying ability of a company.
Capital which is required to finance the ordinary trading activities of a company, i.e. to purchase raw materials, to pay labour to convert raw materials to goods, and to finance debtors.
The difference between current assets and current liabilities, being available to run the day to day activities of a business.
The day to day finance needed for running a business.
During the business life cycle, working capital or money ensures that the business will be able to operate on a daily basis.
A financial calculation equal to a corporation's current assets minus its current liabilities.
The amount of money required to keep the business running effectively and solvent.
current assets minus current liabilities. Indicates the liquidity of a company.
Working capital is a company's short-term disposable capital used to fi nance the day-to-day operations of providing sporting footwear, apparel and hardware to customers. It is calculated as current assets minus current liabilities.
This is a term for the excess of current assets over current liabilities of a business. Working capital should be adequate to finance the day-to-day running of the business without undue strain. See also 'Assets'.
Key financial figure which shows changes in liquidity, in particular the difference between current assets and short-term liabilities.
Cash available for daily business operations. Current assets - current liabilities = working capital.
Capital tied up in Cash, Accounts Receivable and Inventories, less Accounts Payable.
the resource a company can use to finance day-to-day operations
The difference between a company’s current assets and current liabilities (excluding short-term debt). It is also known as net current assets. Français: Fonds de roulement Español: Capital de explotación, capital circulante, fondo de operaciones, capital de operaciones (circulante)
A major cause of business failure is not having enough working capital. Working capital can be made up of cash in the bank, trade credit, borrowing capacity (usually in the form of an overdraft arrangement) and cash flow (monies generated by the business). You need adequate working capital to meet start-up expenses and see the business through any unexpected dips in business activity. For example, funds are needed to pay rent and a rent deposit, utility deposits, license fees, wages during the training period etc. As it takes time to build up sales in a new business, the initial few months are likely to generate trading losses – all this needs to be financed.
The assets a company has that can be poured into the company's operations.
Defined as the difference between current assets and current liabilities (excluding short-term debt). Current assets may or may not include cash and cash equivalents, depending on the company.
Syn: net working capital.
The amount of capital available for current use in the operations of a business measured by the excess current assets (cash and assets readily converted into cash) after current liabilities have been subtracted.
Working capital is also known as net current assets. It is the capital available for conducting day-to-day operations of a business. Normally working capital will be positive – i.e. there is an excess of current assets over current liabilities – which therefore needs to be funded.
Working capital is a valuation metric that is calculated as current assets minus current liabilities. Also known as operating capital, it represents the amount of day-by-day operating liquidity available to a business. A company can be endowed with assets and profitability, but short of liquidity, if these assets cannot readily be converted into cash.