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.
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.
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.
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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.
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.
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.
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 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.
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.
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'.
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 â€“ all this needs to be financed.
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 â€“ i.e. there is an excess of current assets over current liabilities â€“ 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.