working capital

noun

: capital actively turned over in or available for use in the course of business activity:
a
: the excess of current assets over current liabilities
b
: all capital of a business except that invested in capital assets

Examples of working capital in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
The top 20 companies on the list dictate terms to suppliers and logistics networks, which enables them to achieve lower cost-per-unit metrics and better working capital cycles as well as faster go-to-market speed than smaller peers. — Arthur Zaczkiewicz, Footwear News, 4 Aug. 2026 Buried inside the purchase agreement was something called a working capital clause. — Lien De Pau, Forbes.com, 29 July 2026 For example, before a client meeting, the client’s relationship manager will pull in colleagues who can offer up M&A ideas, working capital solutions, or ways to mitigate interest rate risks. — Andrew Edgecliffe-Johnson, semafor.com, 24 July 2026 The Lewis family, the north London club’s majority owners, injected £100m to provide fresh working capital last month, following a previous £100m injection last October. — Mark Critchley, New York Times, 4 July 2026 See All Example Sentences for working capital

Word History

First Known Use

1798, in the meaning defined above

Time Traveler
The first known use of working capital was in 1798

Rhymes for working capital

See All Rhymes for working capital

Browse Nearby Words

working/business lunch
working capital
working card
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Cite this Entry

“Working capital.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/working%20capital. Accessed 6 Aug. 2026.

Copy Citation

Legal Definition

working capital

see also:
capital

More from Merriam-Webster on working capital

Nglish: Translation of working capital for Spanish Speakers

Britannica.com: Encyclopedia article about working capital

Last Updated: - Updated example sentences
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