Define Working Capital?

[Taimoor Jutt]

Working capital is the financial power to do a work.everyone needs working capital for starting it's business.capital maybe in the form of land ,labours and money ..we can't do any worthable business without working capital

 

[Presido]

Working capital in accounting terms is the difference between the current assets and the current liabilities.Working capital in business is used to determine the capital which have been consumed during the trading period.

 

[Richard92]

Working capital is the total amount of money you use as a business man for your day to day running of your business. Working capital is very important for every business to succeed. As a business owner you must always have working capital for work in progress, it allows work to go smoothly.

 

[EMMANUEL]

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.

 

[Adventurer]

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

In lay man terms, it is the capital meant to take care of the day to day essentials of your business, like petty cash, office expenses. It is calculated as current assets minus the current liabilities.

 

[Yewande]

Working capital is a financial system 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.

 

[zyralorenzo01]

For me working capital is the initial investment you will roll out for the business. Working capital is cannot be used even youre business depreciates. That defines working capital for me.

 

[Chumzy]

Working capital in accounting are like variable expenses in economics. It is the money or resources directly involved in the process production process. The variation of working capital will affect the quantity of products or services that will be available for sale.

 

[Klashlly]

Define Working Capital​

Definition. Working capital is the amount of cash a business can safely spend. It's commonly defined as current assets minus current liabilities. Usually working capital is calculated based on cash, assets that can quickly be converted to cash (such as invoices from debtors), and expenses that will be due within a year

 

[Judee201]

Working capital is money that’s available to a company for its day-to-day operations. Simply put, working capital indicates a company's operating liquidity and efficiency.

A company's working capital reflects a host of company activities, including cash, inventory, accounts receivable, accounts payable, and the portion of debt due within one year (as well as any other short-term accounts). This can extend to inventory management, debt management, revenue collection, and payments to suppliers.

 

[Shayo]

Working capital can be simply put as what a company gets when the current liabilities is deducted from the current assets.
It is an indicator of the financial position of a company and it also shows if a company has sufficient assets or is in debt.

 

[Sariana23]

Capital is the amount of money available to start a business or any type of work you want to do. Without capital, you cannot start a business, buy materials for a particular job. The money that is invested to obtain economic benefits, increasing the possibility of becoming independent and stop being an employee.

 

[Chumzy]

The capital of every business is splitted into fixed capital and working capital. Fixed capital are those used to procure the assets of the company that usually have more than one year span. Working capital is the capital used in the daily running of the business for the expenses it incurs in business.

 

[Xerryl]

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

 

[Emma Aneni]

Working capital is a financial metric which represents operating liquidity available to a business, organization, or other entity, including governmental entities. Working capital management is important due to many reasons.

 

[Ziki]

Yea so Working capital is a common measure of a company's or business liquidity, efficiency, and overall health.it includes cash, inventory, accounts receivable, accounts payable.

 

[Adegbindin Abdullahi]

Working capital is the amount of cash a business can safely spend. Its commonly defined as a current assets minus current liabilities. Usually working capital is calculated based on cash,assets that can quickly be converted to cash and expenses that will be due within a year

 

[Adetayo100]

Working capital is the difference between a company's current assets, such as cash, accounts receivable (customers' unpaid bills) and inventories of raw materials and finished goods, and its current liabilities,

 

[Thosynho]

Working capital is the same as running capital. And it simply means, assert or money that is already put into investment. It's no longer available until after the expiration of the investment or business.

 

[Dorcey]

Working capital is the current asset minus current liability. That is the money that's left after you have cleared all the money you need to pay outside or debts. it is normally used in running business