Working Capital

Working Capital means:
funds invested in a company's cash, accounts receivable, inventory, and other current assets (gross working capital'). The term usually refers, however, to net working capital, that is, current assets minus current liabilities. Working capital finances the cash conversion cycle of a business the length of time required to convert raw materials into finished goods, finished goods into sales, and accounts receivable into cash.

See also other Tax Terms and Definitions in U.S.A.

Bardahl formula.