© 2015 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Working Capital


The difference between a company's current assets and current liabilities. This is a measure of liquidity; does the company have enough of a cushion to satisfy its short-term cash needs? You might think the higher the "better" but too much working capital might mean that the company isn't utilizing its assets as efficiently as it could.