What is business working capital? What is the difference between start up capital and working capita

Working capital is also known as "working capital". In foreign countries, it is called working capital. It is the net amount of the total current assets of the joint venture minus the total current liabilities, that is, the net working capital available for use and turnover in the operation of the enterprise.

Since working capital is the net amount of current assets minus current liabilities, changes in current assets and current liabilities will cause changes in working capital. If current liabilities remain unchanged, an increase in current assets means an increase in working capital; A decrease in liquid assets means a decrease in working capital.

If the current assets remain unchanged and the current liabilities increase, it means that the working capital decreases; A decrease in current liabilities means an increase in working capital. In the case of both changes at the same time, only the net amount after the two offsets is the net increase or decrease in working capital.

Under normal circumstances, only economic operations involving current assets or current liabilities on one side and non-current assets or non-current liabilities (e.g. long-term liabilities, long-term investments, capital, fixed assets, etc.) on the other side will result in an increase or decrease in working capital.

Both parties are involved in economic operations such as current assets or current liabilities, i.e., operations that occur between items within working capital, and will not result in an increase or decrease in working capital.

Working capital, from an accounting point of view, refers to the net amount of current assets and current liabilities. If the current assets are equal to the current liabilities, the funds occupied on the current assets are financed by the current liabilities; If the current assets are greater than the current liabilities, the corresponding "net current assets" should be financed by a certain share of long-term liabilities or owners' equity** Accounting does not emphasize the relationship between current assets and current liabilities, but only uses their differences to reflect the solvency of an enterprise. In this case, it is not conducive to the management and understanding of working capital by financial personnel; From a financial point of view, working capital should be the sum of the relationship between current assets and current liabilities, where the "sum" is not the sum of the amount, but the reflection of the relationship, which is conducive to the realization of financial personnel that the management of working capital should pay attention to the two aspects of current assets and current liabilities.

The concept of "working capital" has both narrow and broad interpretations. The meaning of working capital in a broad sense is the total amount of current assets of an enterprise, and this concept is mainly used in the study of the liquidity and turnover of corporate assets. Working capital in the narrow sense refers to the balance of the total current assets of the enterprise minus various current liabilities, also known as net working capital.

Since net working capital is considered to be used as an investment in the company's non-current assets and funds to settle its non-current liabilities**, the concept of working capital in the narrow sense is mainly used in the study of the solvency and financial risk of a business. Therefore, the holding status and management level of working capital of an enterprise are directly related to the profitability and financial risk of the enterprise.

Working capital = current assets - current liabilities = long-term capital - long-term assets.

Working capital in a broad sense is a specific concept, which includes the total current assets of an enterprise, which is composed of cash and valuable**, accounts receivable and prepaid accounts receivable and various inventory assets held by the enterprise in a certain period. Relatively speaking, working capital in the narrow sense is an abstract concept, which is only the difference between the current assets and current liabilities of the enterprise in a certain period, and does not specifically refer to an asset, and the determination of the difference depends entirely on the operation and financial status of the enterprise in a certain period, which is an important basis for judging and analyzing the capital operation status and financial risk of the enterprise. ”

Working Capital Current Assets - Current Liabilities.

When the working capital is less than zero, it means that the short-term assets cannot repay the short-term debt, and the long-term assets cannot be realized within one year, which requires additional financing, and if it is greater than zero, it cannot be said that it must be solvent, and the debt is divided into long-term and short-term, and this indicator is only short-term.

Summary. The difference between start-up capital and working capital refers to the necessary funds to start a project or plan, and it is the upfront expenditure of the project or plan.

The difference between start-up capital and working capital refers to the necessary funds to start a project or plan, and it is the upfront expenditure of the project or plan.

The start-up capital includes the decoration of the store's key, the purchase of equipment, the purchase of goods, etc., and also includes the funds required for Chanliang's unemployed training, store leasing, and store display of goods, as well as funds in varying quantities.

The main content of capital operation management.

Working capital refers to the funds occupied in the production and operation activities of the enterprise. Working capital is divided into a broad sense and a narrow sense, and working capital in a broad sense refers to the total amount of current assets of an enterprise. Working capital in the narrow sense refers to the balance of current assets minus current liabilities.

The internal Xunchun pants of working capital management are current assets and current liabilities. How much should a company invest in current assets, that is, the management of the use of funds. It mainly includes cash management, accounts receivable management and inventory management.

How should enterprises carry out the financing of current assets, that is, the management of fund raising? Including the management of short-term bank borrowings and the management of commercial credit.

How should the company's capital equity and technology equity, and future development fund dividends be reasonably distributed?

How do you assess the net output of a restaurant? For example, the restaurant is 3,333 square meters, and the decoration investment hail family talks about 9.8 million yuan in Suisen (has been invested for 6 years), with a monthly capital of 350,000 yuan, an average of 3 million yuan before the epidemic, and an average revenue of 1.5 million yuan during the epidemic. How much is the transfer fee?

How to assess the net output value of a restaurant hail people talking about Suisen? For example, the restaurant is 3,333 square meters, with an investment of 9.8 million yuan in decoration (it has been invested in the source for 6 years), a monthly capital of 350,000 yuan, an average monthly revenue of 3 million yuan before the epidemic, and an average monthly revenue of 1.5 million yuan during the epidemic. How much is the transfer fee?

The current contract is still 7 years away.

The canteen is graded, and the total construction area of each dining staff is calculated according to 3-square meters, the restaurant is calculated according to the square meter, and the kitchen is calculated according to the square meter. The common area is calculated by square meters, and the traffic is scattered and inspected and the knotted eggplant structure is calculated by square meters. The general canteen is divided into 3 batches.

I mean, how do you assess the net output of this restaurant? How much is the transfer fee reasonable?

There are seven years left on the contract. The transfer fee is at least $5 million.

Working capital. It can be used to measure the short-term solvency of a company or business.

The larger the amount, the more prepared the company or business is for payment obligations and the better its short-term solvency. When working capital is negative, it is the current assets of a business.

Less than current liabilities.

The company's operations may be interrupted at any time due to a lack of turnover. The key to decision-making is how much working capital is sufficient for an enterprise to be called a good solvency. If the value of solvency is converted into a proportion or ratio, a more significant conclusion may be reached.

Working capital. It is also known as "the use of capital and stuffy money". It is also known as working capital.

It is the net amount of the total current assets of the joint venture minus the total current liabilities, that is, the net working capital available for use and turnover of the enterprise in its operation.

Working capital: net of current assets after deducting current liabilities.

Working capital refers to the funds occupied on current assets in the production and operation activities of an enterprise. Working capital is divided into broad and narrow senses, and the broad sense of working capital search fund refers to the total base and amount of current assets of an enterprise; Working capital in the narrow sense refers to the balance of current assets minus current liabilities. This refers to the narrow concept of working capital.

The management of working capital includes the management of both current assets and current liabilities.

Working capital is also known as "uncertainty about the use of funds". It is called working capital abroad. It is the net amount of the total current assets of the joint venture minus the total current liabilities, that is, the net working capital available for use and turnover in the operation of the joint venture.