| 单词 | working capital |
| 释义 | working capital working capital The part of the capital of a company that is employed in its day-to-day trading operations. It consists of current assets (mainly trading stock, debtors, and cash) less current liabilities (mainly trade creditors). In the normal trade cycle—the supply of goods by suppliers, the sale of stock to debtors, payments of debts in cash, and the use of cash to pay suppliers—the working capital is the aggregate of the net assets involved, sometimes called the working assets. The management of working assets is very important to a company. Holding sufficient levels of finished goods to meet customer requirements is important, but managers must also be aware of the cost of holding these goods. |
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