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English Lexicon

Working Capital

/ˈwɜːrkɪŋ ˈkæpɪtəl/
nounCEFR C1 (Advanced)Top #4500 frequency
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Comprehensive Definitions & Senses

1 sense
As noun
  1. 1

    The capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.

    "The company needs to secure additional working capital to fund its expansion plans."
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Linguistic Origin & Historical Etymology

Derived from English 'working', present participle of 'work', and 'capital', stemming from Latin 'capitalis' (pertaining to the head or principal sum), via Old French. Combined in financial contexts during the 19th century to denote the funds actively used in day-to-day business operations.

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