Investopedia

Continue to Site »

Gross Working Capital

Filed Under » , , ,
Dictionary Says

Definition of 'Gross Working Capital'

The sum of all of a company's current assets (assets that are convertible to cash within a year or less). Gross working capital includes assets such as cash, checking and savings account balances, accounts receivable, short-term investments, inventory and marketable securities. From gross working capital, subtract the sum of all of a company's current liabilities to get net working capital.
Investopedia Says

Investopedia explains 'Gross Working Capital'

A company needs just the right amount of working capital to function optimally. With too much working capital, some current assets would be better put to other uses. With too little working capital, a company may not be able to meet its day-to-day cash requirements. The correct balance is obtained through working capital management.

Articles Of Interest

  1.

    Evaluating A Company's Capital Structure

    Learn to use the composition of debt and equity to evaluate balance sheet strength.

  2. Burn Rate Key Factor In Company's Sustainability

    Be careful around companies with high cash burn rates. These investments can turn to ashes.

  3. Working Capital Works

    A company's efficiency, financial strength and cash-flow health show in its management of working capital.

  4. Free Cash Flow: Free, But Not Always Easy

    Free cash flow is a great gauge of corporate health, but it's not immune to accounting trickery.

  5. If You Don't Mind Volatility, Deere Could Still Do Alright

    Though Deere's shares sold off after earnings, the business model is sound and rolling along.

  6. Agilent Isn't Making It Easy On Investors

    Core operating performance at Agilent needs to improve

  7. Consumer Spending As A Market Indicator

    What people buy and where they shop can provide valuable information about the economy.

  8. Depreciation: Straight-Line Vs. Double-Declining Methods

    Appreciate the different methods used to describe how book value is "used up".

  9. Overheated Expectations Send Rackspace Investors To The Torture Chamber

    Absent a real competitive moat, it's hard to make sense of Rackspace's valuation.

  10. Mondelez Isn't As Good As Nestle, But Priced Like It Is

    Investors seem to bullish on Mondelez, given the relative performance at Kellogg and Nestle.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  2. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  3. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  4. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  5. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.

  6. Lease To Own

    An arrangement where an individual enters into a lease agreement with an owner with the inclusion of a clause that typically gives the individual the right, but not the obligation, to purchase the item leased at a predefined price and time.
Trading Center