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Definition of


Finance abbr

firm's money available for trading working capital: the funds that are readily available to operate a business.

example: Working capital comprises the total net current assets of a business minus its liabilities.

Current assets − current liabilities

Current assets are cash and assets that can be converted to cash within one year or a normal operating cycle; current liabilities are monies owed that are due within one year.

If a company's current assets total $300,000 and its current liabilities total $160,000, its working capital is:

$300,000 − $160,000 = $140,000


Definitions of ’WC’ and meaning of ’WC’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’WC’ and other financial terms with our online QFINANCE Financial Dictionary.

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