The working capital
Example: Working capital measures short-term financial resources available for operations
Definition
"The working capital" refers to the amount of a company's short-term financial resources that are available to fund its day-to-day operations. It is calculated as current assets minus current liabilities and serves as an indicator of liquidity and operational efficiency.
Etymology
The term "the working capital" originates from the combination of 'working,' implying active use or operation, and 'capital,' which refers to financial assets or resources. It emerged in business language to describe the funds actively used in the ongoing activities of a company.
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"The working capital" appears in the Vocaplus list "English - Finance - (A1-C2) - set 1", containing 150 commonly used words.
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