Working Capital

Summary of Working Capital

A measurement of a firm’s liquidity, determined by the excess of current assets over current liabilities. The ratio so derived is the working capital ratio.

(Main Author: William J. Miller)

Literature Review on Working Capital

In the Encyclopedia of Public Administration and Public Policy, [1] Justin Marlowe offers the following summary about the topic of Working Capital: The long-term viability of any public organization is heavily dependent on that organization’s effective use of working capital. Working capital provides operations managers with financial resources to meet short-term obligations, generate interest income through short-term investments, take advantage of discounts and other limited-term procurement opportunities, and address many other day-to-day concerns. Moreover, sound working capital management practices can free up cash during tough fiscal times, thus mitigating the need for costly short-term borrowing. Working capital management is therefore one of the central concerns facing public financial managers. This entry examines working capital from both an accounting and a financial managerial perspective.

Resources

See Also

• Industry
• Industrial Unionism
• Labor Law
• Industrial Disputes
• Business Law

Resources

Notes and References

1. Entry about Working Capital in the Encyclopedia of Public Administration and Public Policy (2015, Routledge, Oxford, United Kingdom)

See Also

Further Reading

• Global Encyclopedia of Public Administration, Public Policy, and Governance (2018, Springer International Publishing, Germany)

Hierarchical Display of Working capital

Business And Competition > Accounting > Accounting > Financial accounting

Working capital

Concept of Working capital

See the dictionary definition of Working capital.

Characteristics of Working capital

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Translation of Working capital

• Spanish: Activo circulante
• French: Fonds de roulement
• German: Betriebsmittel
• Italian: Capitale circolante
• Portuguese: Fundo de maneio
• Polish: Kapitał obrotowy

Thesaurus of Working capital

Business And Competition > Accounting > Accounting > Financial accounting > Working capital

See also

• European Committee of the Regions

• Relationship between the regions and the EU

• Brussels-capital region