Operating Capital
/ˈɒpəreɪtɪŋ ˈkæpɪtl/
Definitions
- (n.) The funds available to a business for its day-to-day operations, encompassing current assets minus current liabilities.
The company increased its operating capital to cover short-term expenses.
Forms
- operating capital
Related terms
See also
Commentary
Operating capital is critical for maintaining liquidity and operational solvency; it is often closely analyzed in contracts and financial disclosures to assess business health.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.