Working capital
Working capital is a firm's investment in short-term assets—cash, marketable securities, inventory, and accounts receivable.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Working capital. A firm's investment in short-term assets—cash, marketable securities, inventory, and accounts receivable.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Working capital. Current assets.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Working capital. Current assets minus current liabilities; measures a business's ability to meet its short-term obligations with its current assets.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
