CorporateWords A-Z Index
CorporateWordsTerms › Working Capital

Working Capital

Technical Finance Buzzword Finance

Current assets minus current liabilities — the cash breathing room for daily operations. Businesses die of working capital problems while technically profitable, which feels like a rules violation.

Heard in the wild

“Growth is eating our working capital; we're profitable and broke.”

Tone check: Technical

'Profitable but cash-poor' kills more small companies than bad products do. Respect the concept.

Explore this term in the full dictionary →

Related Finance terms