* Site-Outage Notice: Our engineering elves will be tweaking the Shmoop site from Monday, December 22 10:00 PM PST to Tuesday, December 23 5:00 AM PST. The site will be unavailable during this time.
© 2014 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.