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Home > QFINANCE Dictionary > Definition of circulating capital

Definition of

circulating capital

Finance

firm's money available for trading the funds that are readily available to operate a business. Working capital is current assets minus current liabilities.

Related definitions of "circulating capital"

Recommended Further Reading (Term count)
  • Value Creation—Perspectives and Implications
    by John C. Groth
    This article focuses on the creation of value by a company or organization. We assume a competitive environment in the sense that the end user of a product or service has the right to buy or not to buy, to use or not to use a product or service. Although the discussion and examples focus on value creation in terms of economic measures—for example, an increase in share price—we recognize that other important measures of value exist. Quality of...
circulating capital - Related Articles
  • Value Creation—Perspectives and Implications

    Best Practice

    Reinvestment of the recovered capital, and possibly of net margins, and allowing it to circulate through the cycle again occur if the expected returns of repeating the cycle appear attractive compared to the opportunity cost of capital. The opportunity cost of capital represents the expected returns
    By John C. Groth

  • Merchant Banks: Their Structure and Function

    Checklists

    Merchant banks offer corporate advisery services to clients for their financial problems. Advice may be sought in such areas as determining the right debt-to-equity ratio, the gearing ratio, and the appropriate capital structure. Other areas of advice may be in areas of refinancing and seeking

  • Private Investments in Public Equity

    Best Practice

    “death spirals” or “toxic converts,” because investors in these deals may be tempted to push down the issuer’s stock price through short sales, circulating false negative rumors, etc., so that their structured PIPEs become convertible into a controlling stake of the issuer.
    By William K. Sjostrom, Jr

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Definitions of ’circulating capital’ and meaning of ’circulating capital’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’circulating capital’ and other financial terms with our online QFINANCE Financial Dictionary.

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