working capital


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working capital,

n a firm's investment in short-term assets or cash, short-term securities, accounts receivable, and inventories. Gross working capital is defined as current assets minus current liabilities. If the term
working capital is used without further qualification, it generally refers to gross working capital.

working capital

see working capital.
References in periodicals archive ?
Leading companies are tackling their working capital challenges head on, and are able to outperform their peers regardless of sector," said Mihir Bhatt, Director, PwC Middle East.
Working capital and cash management is an increasing focus for boards, management teams and shareholders.
The company added: "In addition to the cash benefits received from better working capital management, leading working capital performers have shown better KPIs across all key financial metrics, such as revenue growth, EBITDA margin, and return on capital employed, demonstrating [that] the impact of working capital efficiency extends well beyond cash.
For corporations, the working capital is essential for continuity of activities, maintaining the highest performance, increasing the production volume, keeping the credibility steady, reducing impacts of risks and dealing with the extraordinary situations.
Also a categorization of existing working capital research is made.
Working capital adjustments are deal and company specific.
Appuhami (2008) examined the impact of firms' capital structure on the working capital management of firms listed on Thailand Stock Market.
From a supply chain management perspective, working capital is defined as the sum of inventories and customer receivables, less supplier liabilities, and is often measured by the cash-to-cash (C2C) cycle time.
The nature of working capital is such that effective cash management is important during recessionary periods to provide protection against market uncertainties, while in expansionary periods it can fund controlled growth.
Over 80% of companies today have identified working capital improvement as one of their highest priorities needing attention.
75 per cent and the prediction that the figure may rise beyond six per cent have seen industries that rely heavily on working capital, such as manufacturing, publishing and food processing, most affected, while cash businesses, like retail and travel, which are less reliant, have not felt the impact to the same extent.