circulating capital
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"
- Also called working capital
You are here: Home > QFINANCE Dictionary > Definition of circulating capital
firm's money available for trading the funds that are readily available to operate a business. Working capital is current assets minus current liabilities.
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 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
“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
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.