accounting
working capital
The difference between a company's current assets and current liabilities, representing the capital available for day-to-day operations.
Example
"The restaurant had $50,000 in working capital to cover payroll and food costs."
💡 Memory Tip
WORKING capital is the money that WORKS for you every day — paying bills, buying inventory.
Etymology
Working (actively operating) + capital — the capital that is actively working in the business.
Common Misspellings
working capitallworking captalworking capitlworkng capital
Related Terms
See Also
assetsliabilities