Working Capital

Definitions

1. Current assets minus current liabilities, representing short-term liquidity available to operate the business. Working capital matters especially in companies with inventory, payment timing gaps, or significant upfront operating needs.

   In plain English: Short-term financial resources available to keep the business operating.

   Example: "The company looked profitable on paper, but working capital pressure still constrained growth."

Related Terms

• Cost Center
• Extended Runway
• G&A
• Market Maker
• Aftermarket
• Asset-Light
• Capital Efficiency
• Operating Expense
• Public Market
• Virtual CFO