Practical Law ANZ Glossary w-005-9158 (Approx. 2 pages)
Glossary
Working capital
A company's current assets less its current liabilities. For example, if a company's balance sheet dated June 30 reports total current assets of $456,000 and total current liabilities of $280,000, then the company's working capital on 30 June was $176,000. It is important for a company to have sufficient working capital to finance the day-to-day expenses of running its business.