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Zimon, G. Working Capital. Encyclopedia. Available online: https://encyclopedia.pub/entry/12875 (accessed on 17 September 2026).
Zimon G. Working Capital. Encyclopedia. Available at: https://encyclopedia.pub/entry/12875. Accessed September 17, 2026.
Zimon, Grzegorz. "Working Capital" Encyclopedia, https://encyclopedia.pub/entry/12875 (accessed September 17, 2026).
Zimon, G. (2021, August 06). Working Capital. In Encyclopedia. https://encyclopedia.pub/entry/12875
Zimon, Grzegorz. "Working Capital." Encyclopedia. Web. 06 August, 2021.
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Working Capital
This is a peer-reviewed entry published in Encyclopedia Journal, full entry can be found at 10.3390/encyclopedia1030058

The simplest net working capital can be defined as the difference between the value of current assets and short-term liabilities together with other short-term accruals. It is equivalent to the part of the current assets financed with equity, provisions for liabilities, long-term liabilities, and the remaining part of accruals. Therefore, it is the capital that finances only that part of the current assets that are not financed with short-term liabilities. This amount is financed with fixed capital. Summing up, net working capital is the fixed capital that finances the company’s current assets. 

working capital strategy financial liquidity financial security

References

  1. Wędzki, D. Strategie Płynności Finansowej; Oficyna Ekonomiczna: Kraków, Poland, 2003.
  2. Nowak, E. Analiza Sprawozdań Finansowych; PWE: Warszawa, Poland, 2010.
  3. Dębski, W. Teoretyczne i Praktyczne Aspekty Zarządzania Finansami Przedsiębiorstw; Wydawnictwo Naukowe PWN: Warszawa, Poland, 2005.
  4. Bringham, E.F.; Houston, J.F. Podstawy Zarządzania Finansami; PWE: Warszawa, Poland, 2005.
  5. Andrew, J.; Gallagher, T. Financial Management: Principles and Practice; Freeload Press: Madison, WI, USA, 2007.
  6. Blinder, A.S.; Maccini, L.J. The resurgence of inventory research: What have we learned? J. Econ. Surv. 1991, 5, 291–328.
  7. Brealey, R.A.; Myers, S.C.; Marcus, A.J. Fundamentals of Corporate Finance, 7th ed.; McGraw Hill: New York, NY, USA, 2012.
  8. Nunn, K. The strategical determinants of working capital: A product line perspective. J. Financ. Res. 1981, 4, 207–219.
  9. Kim, Y.; Srinivasan, V. Advances in Working Capital Management; JAI Press: Greenwich, CT, USA, 1988.
  10. Groppelli, A.; Nikbakht, E. Finnance; Barrons: London, UK, 2006.
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Subjects: Economics
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Reprint: Encyclopedia of Social Sciences
Online Date: 06 Aug 2021
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