operating capital JUST WRITTEN FOR YOU
/ˈɒpəreɪtɪŋ ˈkæpɪtəl/ · op·er·at·ing cap·i·tal
noun
- The amount of money or other liquid assets that a company uses to finance its routine operations and cover short‑term expenses. The startup raised enough operating capital to keep its payroll and inventory flowing for the first twelve months.
- Funds set aside specifically for covering operating costs such as rent, utilities, and wages. After the merger, the new entity allocated additional operating capital to expand its manufacturing capacity.
Synonyms
working capitaloperational fundscash flowliquid assetscurrent capitaloperating fundsbusiness capitalrunning capital
Antonyms
Did you know? Although "working capital" is the more common term today, "operating capital" appeared in early 20th‑century trade journals and was once the standard phrase for day‑to‑day business funds.