What Is Operating Capital

No view

Operating Capital Definition. Operating capital is defined as the cash used for daily operations in a company. As a result, it is essential to the survival of each and every business. Whether small or large, across industries, and under any other conditions that a business faces, lack of cash is one of the main .Operating capital is defined as the capital used for daily operations in a business. This definition is broad and includes all factories, equipment, inventories, raw materials and cash the company uses in its daily operations..Working capital is a measure of both a company 's efficiency and its short-term financial health. Working capital is calculated as: Working Capital = Current Assets - Current Liabilities..