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Dictionary by pitch.dog
Assets, liabilities & equity · Core

Working capital

Also called: net working capital

ELI5

Current assets minus current liabilities, or an operational variant that must be explicitly defined.

Used in conversation

“The number is useful only if everyone calculates working capital the same way.”

Pitch context

You will see “Working capital” in financial models, budgets, board packs and investor materials when the discussion reaches assets, liabilities & equity.

Why it matters: In assets, liabilities & equity, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

When the words have to travel

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Sources & evidence · 4

Direct term-level sources and supporting source families.