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in Tech Knowledge - 24 May, 2012
by Daren - no comments
[definition] Working Capital

The amount of money that a company has tied up in funding its day to day operations through cash, accounts receivable, inventory and other current assets

Working capital usually finances the cash cycle of a business – the time required to convert raw materials into finished goods, finished goods into sales and accounts receivables into cash

Usually expressed as the difference between Current Assets and Current Liabilities