Define Working Capital?

[Braga13]

Give me a definition for this term ? And what Its importance ?

 

[Deysi16682]

Give me a definition for this term ? And what Its importance ?

Hello, they are the financial resources to be able to start a business, obviously without capital there is no entrepreneurship, there is the importance.

 

[WhiteHouse]

As the name recommends.. it is the capital need to work. Basically, it is the measure of money or fluid resources for guarantee smooth day by day working of the business.

 

[Ralphjoe]

Working capital is the amount of capital that a business is currently utilizing in running the daily production. It can be increased based on emergency needs.

 

[Abibatabosede]

Working capital is the amount of money invested on a businessand still in use.It brings interest to the investor and at the same time keep the investor in business.

 

[Maheen Khadija]

Definition is Working capital is a financial metric which represents operating liquidity available to a business, organization, or other entity, including governmental entities. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Another definition is A firm's working capital consists of its investments in current assets, which includes short-term assets—cash and bank balance, inventories, receivable and marketable securities. Therefore, the working capital management refers to the management of the levels of all these individual current assets.

Give me a definition for this term ? And what Its importance ?

 

[Alexandoy]

My understanding of working capital is the money that you invested which is used for running the business. One example is petty cash which is a small amount to handle small expenses like short travel (by bus or taxicab). The total amount that the business is spending for the operation like the daily overhead. The working capital is differentiated from the capital that is invested to earn interest from the bank or from any other kind of investment.

 

[Trexxxy]

Working capital is the capital the company has excluding liabilities and other expenses like salary , maintenance cost etc to ensure smooth operation of the companies day to day activities.

 

[Dubai]

Working capital is that which you use in the starting up a business and it the amount used maintain the sustainability of the business. It has nothing to do with profit.

 

[MastetG]

Working capital is a financial metric which represents operating liquidity available to a business, organization, or other entity, including governmental entities. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital.

 

[Aniwhyte]

Working capital can be defined as a form of loan for people that already owns a business or company and needs more capital to expand it bigger and to more greater heights.

 

[Kennysplash]

Give me a definition for this term ? And what Its importance ?

Working Capital is the capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities. Without it you can actually start a business let alone operate it.

 

[Emmanuella]

I think working capital is the amount of money one invested into a business and the money that's used to run the business. For a smooth and successful management of a business organization, their should be enough working capital, it will help sustain the business

 

[joy101]

Working capital, is the amount of money you invested in a business, working capital can also define as the amount of money you use to start up a business, so capital is very important in life.

 

[Kinglegend01]

Working capital is the amount of money that was used to establish a business endeavor. It is the initial money that was invested in a business. The reward (importance) for capital is profit. In other words you can't reap profit if you have not invested a sum of money(capital) into a business.

 

[Damismiling]

Working capital is the money at hand presently ued in the day to day running of the business,this money should be increase as the business make more profit ,for proper expansion of the business and organization.

 

[Sincerem]

This the capital expenditure of your business, in oder enable steady cash flow in your business. You need a working capital to keep cash flowing in your business. Cos you don't invest all you have in your business. You need to invest and leave some in your bank to solve any entangling issues that might arise in your business.

 

[Ridorz]

As my own understanding about working capital, it can be describes as a capital or money that using to keep running a business continuely in which to succeed or meet the target objectives or goals. That is my perspective of working capital.

 

[Fatima]

According to my understanding working capital is the money you can safely spend on a business.
[automerge]1609879750[/automerge]
According to my understanding working capital is the money you can safely spend on a business.

 

[Doradorwa]

Working capital management is a very important component of corporate finance because it directly affects the liquidity and profitability of the company. It deals with current assets and current liabilities. Working capital management is important due to many reasons. For one thing, the current assets of a typical manufacturing firm accounts for over half of its total assets. For a distribution company, they account for even more. Excessive levels of current assets can easily result in a firm’s realizing a substandard return on investment.