Term

Working Capital

Money needed to run day-to-day operations.

Pending professional review. This content was drafted with Claude from official sources and has not yet been reviewed by an ArthaKara professional. Verify against the official sources before relying on it.
Simple meaningMoney needed to run day-to-day operations.

Technical meaning

Current assets minus current liabilities; the gross working capital cycle measures days of inventory, receivables and payables.

Practical example

A trader with Rs 50 lakh stock and receivables and Rs 30 lakh creditors has Rs 20 lakh net working capital.

Related terms

Official reference

General usage

Information published by ArthaKara Consulting Services is intended for general educational and informational purposes. It is based on the statutory provisions and official information referenced on the respective page as of its stated verification date. Laws, rules, notifications and regulatory interpretations may change. Readers should independently verify the applicable provisions and seek professional advice before taking action. ArthaKara is an independent professional information and consulting platform and is not a government website or government-endorsed portal.