{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,6,3]],"date-time":"2026-06-03T14:51:51Z","timestamp":1780498311656,"version":"3.54.1"},"reference-count":44,"publisher":"MDPI AG","issue":"3","license":[{"start":{"date-parts":[[2021,8,6]],"date-time":"2021-08-06T00:00:00Z","timestamp":1628208000000},"content-version":"vor","delay-in-days":0,"URL":"https:\/\/creativecommons.org\/licenses\/by\/4.0\/"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["Encyclopedia"],"abstract":"<jats:p>The simplest net working capital can be defined as the difference between the value of current assets and short-term liabilities together with other short-term accruals. It is equivalent to the part of the current assets financed with equity, provisions for liabilities, long-term liabilities, and the remaining part of accruals. Therefore, it is the capital that finances only that part of the current assets that are not financed with short-term liabilities. This amount is financed with fixed capital. Summing up, net working capital is the fixed capital that finances the company\u2019s current assets.<\/jats:p>","DOI":"10.3390\/encyclopedia1030058","type":"journal-article","created":{"date-parts":[[2021,8,8]],"date-time":"2021-08-08T21:49:41Z","timestamp":1628459381000},"page":"764-772","update-policy":"https:\/\/doi.org\/10.3390\/mdpi_crossmark_policy","source":"Crossref","is-referenced-by-count":16,"title":["Working Capital"],"prefix":"10.3390","volume":"1","author":[{"ORCID":"https:\/\/orcid.org\/0000-0002-2040-4438","authenticated-orcid":false,"given":"Grzegorz","family":"Zimon","sequence":"first","affiliation":[{"name":"Department of Finance, Banking, and Accountancy, The Faculty of Management, Rzeszow University of Technology, 35-959 Rzeszow, Poland"}],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"1968","published-online":{"date-parts":[[2021,8,6]]},"reference":[{"key":"ref_1","unstructured":"W\u0119dzki, D. (2003). Strategie P\u0142ynno\u015bci Finansowej, Oficyna Ekonomiczna."},{"key":"ref_2","unstructured":"Nowak, E. (2010). Analiza Sprawozda\u0144 Finansowych, PWE."},{"key":"ref_3","unstructured":"D\u0119bski, W. (2005). Teoretyczne i Praktyczne Aspekty Zarz\u0105dzania Finansami Przedsi\u0119biorstw, Wydawnictwo Naukowe PWN."},{"key":"ref_4","unstructured":"Bringham, E.F., and Houston, J.F. (2005). Podstawy Zarz\u0105dzania Finansami, PWE."},{"key":"ref_5","unstructured":"Andrew, J., and Gallagher, T. (2007). Financial Management: Principles and Practice, Freeload Press."},{"key":"ref_6","doi-asserted-by":"crossref","first-page":"291","DOI":"10.1111\/j.1467-6419.1991.tb00138.x","article-title":"The resurgence of inventory research: What have we learned?","volume":"5","author":"Blinder","year":"1991","journal-title":"J. Econ. Surv."},{"key":"ref_7","unstructured":"Brealey, R.A., Myers, S.C., and Marcus, A.J. (2012). Fundamentals of Corporate Finance, McGraw Hill. [7th ed.]."},{"key":"ref_8","doi-asserted-by":"crossref","first-page":"207","DOI":"10.1111\/j.1475-6803.1981.tb00604.x","article-title":"The strategical determinants of working capital: A product line perspective","volume":"4","author":"Nunn","year":"1981","journal-title":"J. Financ. Res."},{"key":"ref_9","unstructured":"Kim, Y., and Srinivasan, V. (1988). Advances in Working Capital Management, JAI Press."},{"key":"ref_10","unstructured":"Groppelli, A., and Nikbakht, E. (2006). Finnance, Barrons."},{"key":"ref_11","unstructured":"Sierpi\u0144ska, M., and W\u0119dzki, D. (2005). Zarz\u0105dzanie P\u0142ynno\u015bci\u0105 Finansow\u0105 w Przedsi\u0119biorstwie, Wydawnictwo Naukowe PWN."},{"key":"ref_12","doi-asserted-by":"crossref","first-page":"328","DOI":"10.2307\/2555961","article-title":"Working capital and fixed investment: New evidence on financing constraints","volume":"24","author":"Fazzari","year":"1993","journal-title":"Rand. J. Econ."},{"key":"ref_13","doi-asserted-by":"crossref","first-page":"1827","DOI":"10.1093\/rof\/rfs043","article-title":"Working Capital Management and Shareholders\u2019 Wealth","volume":"17","author":"Kieschnick","year":"2013","journal-title":"Rev. Financ."},{"key":"ref_14","doi-asserted-by":"crossref","first-page":"924","DOI":"10.1016\/j.jbusres.2013.07.012","article-title":"Access to finance, working capital management and company value: Evidences from Brazilian companies listed on BM&FBOVESPA","volume":"67","author":"Almeida","year":"2014","journal-title":"J. Bus. Res."},{"key":"ref_15","first-page":"1","article-title":"The relationship between working capital management and profitability: Evidence from the United States","volume":"10","author":"Gill","year":"2010","journal-title":"Bus. Econ. J."},{"key":"ref_16","unstructured":"Neale, B., and Pike, R. (2006). Corporate Finance and Investment: Decisions & Strategies, FT Prentice Hall."},{"key":"ref_17","first-page":"111","article-title":"Managing the cash gap","volume":"1","author":"Boer","year":"1999","journal-title":"J. Account."},{"key":"ref_18","first-page":"20","article-title":"Liquidity-Profitability Tradeoff: An Empirical Investigation in a Emerging Market","volume":"2","author":"Eljelly","year":"2004","journal-title":"Int. J. Commer. Manag."},{"key":"ref_19","unstructured":"Bhalla, V.K. (2005). Working Capital Management: Text and Cases, Anmol Publications."},{"key":"ref_20","doi-asserted-by":"crossref","first-page":"3","DOI":"10.1016\/S0304-405X(99)00003-3","article-title":"The determinants and implications of corporate cash holdings","volume":"52","author":"Opler","year":"1999","journal-title":"J. Financ. Econ."},{"key":"ref_21","doi-asserted-by":"crossref","first-page":"335","DOI":"10.2307\/2331099","article-title":"The determinants of corporate liquidity: Theory and evidence","volume":"33","author":"Kim","year":"1998","journal-title":"J. Financ. Quant. Anal."},{"key":"ref_22","doi-asserted-by":"crossref","first-page":"98","DOI":"10.1016\/j.jcorpfin.2014.12.008","article-title":"Is working capital management value-enhancing? Evidence from firm performance and investment","volume":"30","author":"Aktas","year":"2015","journal-title":"J. Corp. Financ."},{"key":"ref_23","doi-asserted-by":"crossref","first-page":"101212","DOI":"10.1016\/j.pacfin.2019.101212","article-title":"Efficient working capital management, financial constraints and firm value: A text-based analysis","volume":"58","author":"Dhole","year":"2019","journal-title":"Pac. Basin Financ. J."},{"key":"ref_24","first-page":"26","article-title":"Relationship between working capital management and profitability of listed companies on the Athens Stock Exchange","volume":"19","author":"Lazaridis","year":"2006","journal-title":"J. Financ. Manag. Anal."},{"key":"ref_25","doi-asserted-by":"crossref","first-page":"36","DOI":"10.1016\/j.ribaf.2014.03.005","article-title":"The impact of working capital management on firm profitability in different business cycles: Evidence from Finland","volume":"32","author":"Enqvista","year":"2014","journal-title":"Int. Bus. Financ."},{"key":"ref_26","doi-asserted-by":"crossref","first-page":"92","DOI":"10.1016\/j.pursup.2012.04.003","article-title":"Working capital management In the Automotive industry: Financial value chain analysis","volume":"18","author":"Lind","year":"2012","journal-title":"J. Purch. Supply Manag."},{"key":"ref_27","first-page":"39","article-title":"Efficiency of working capital management and corporate profitability","volume":"8","author":"Shin","year":"1998","journal-title":"Financ. Pract. Educ."},{"key":"ref_28","unstructured":"Nowak, E., and Nieplowicz, M. (2014). Strategie zarz\u0105dzania kapita\u0142em obrotowym a p\u0142ynno\u015b\u0107 finansowa przedsi\u0119biorstw. Rachunkowo\u015b\u0107 a Controlling, Wydawnictwo Uniwersytetu Ekonomicznego."},{"key":"ref_29","doi-asserted-by":"crossref","unstructured":"Zimon, G., and Tarighi, H. (2021). Effects of the COVID-19 Global Crisis on the Working Capital Management Policy: Evidence from Poland. J. Risk Financ. Manag., 14.","DOI":"10.3390\/jrfm14040169"},{"key":"ref_30","first-page":"137","article-title":"Is there a right level of working capital?","volume":"4","author":"Ek","year":"2011","journal-title":"J. Corp. Treas. Manag."},{"key":"ref_31","doi-asserted-by":"crossref","first-page":"695","DOI":"10.1016\/j.sbspro.2012.03.251","article-title":"Working capital policy practice: Evidence from srilankan companies","volume":"40","author":"Bei","year":"2012","journal-title":"Procedia Soc. Behav. Sci."},{"key":"ref_32","doi-asserted-by":"crossref","first-page":"1490","DOI":"10.1016\/j.jbankfin.2012.03.025","article-title":"Investment andfinancing constraints in China:does working capital management make a difference?","volume":"37","author":"Ding","year":"2013","journal-title":"J. Bank. Financ."},{"key":"ref_33","doi-asserted-by":"crossref","first-page":"1","DOI":"10.1016\/j.ijhm.2015.04.003","article-title":"Working capital, cash holding, and profitability of restaurantfirms","volume":"48","author":"Mun","year":"2015","journal-title":"Int. J. Hospit. Manag."},{"key":"ref_34","doi-asserted-by":"crossref","first-page":"573","DOI":"10.1111\/1468-5957.00008","article-title":"Does working capital management affect profitability of Belgian firms?","volume":"30","author":"Deloof","year":"2003","journal-title":"J. Bus. Financ. Account."},{"key":"ref_35","doi-asserted-by":"crossref","unstructured":"Zimon, G. (2020). An Analysis of Working Capital Management Strategy in Small Enterprises Operating within Group Purchasing Organizations. Eurasian Economic Perspectives, Springer.","DOI":"10.1007\/978-3-030-48531-3_7"},{"key":"ref_36","doi-asserted-by":"crossref","first-page":"33","DOI":"10.1007\/BF02920497","article-title":"Corporate returns and cash conversion cycles","volume":"20","author":"Jose","year":"1996","journal-title":"J. Econ. Financ."},{"key":"ref_37","doi-asserted-by":"crossref","unstructured":"Zimon, G., Babenko, V., Sadowska, B., Chudy-Laskowska, K., and Gosik, B. (2021). Inventory Management in SMEs Operating in Polish Group Purchasing Organizations during the COVID-19 Pandemic. Risks, 9.","DOI":"10.3390\/risks9040063"},{"key":"ref_38","doi-asserted-by":"crossref","first-page":"319","DOI":"10.1016\/j.ijpe.2017.12.002","article-title":"A dynamic lot-sizing-based profit maximization discounted cash flow model considering working capital requirement financing cost with infinite production capacity","volume":"196","author":"Biana","year":"2018","journal-title":"Int. J. Prod. Econ."},{"key":"ref_39","unstructured":"Smith, K.V. (1980). Profitability versus liquidity tradeoffs in working capital management. Readings on the Management of Working Capital, West Publishing Company."},{"key":"ref_40","doi-asserted-by":"crossref","first-page":"332","DOI":"10.1016\/j.jbusres.2013.01.016","article-title":"Working capital management, corporate performance and financial constraints","volume":"67","year":"2014","journal-title":"J. Bus. Res."},{"key":"ref_41","doi-asserted-by":"crossref","first-page":"238","DOI":"10.1016\/j.jbusres.2019.02.032","article-title":"Are working capital decisions truly short-term in nature?","volume":"99","author":"Chauhan","year":"2019","journal-title":"J. Bus. Res."},{"key":"ref_42","doi-asserted-by":"crossref","first-page":"1266","DOI":"10.1016\/j.healthpol.2018.09.012","article-title":"Working capital management policy in health care: The effect of leverage","volume":"122","author":"Dalci","year":"2018","journal-title":"Health Policy"},{"key":"ref_43","doi-asserted-by":"crossref","first-page":"343","DOI":"10.1108\/IJoEM-11-2017-0439","article-title":"Association between the availability of financial resources and working capital management with stock surplus returns in Iran","volume":"14","author":"Salehi","year":"2019","journal-title":"Int. J. Emerg. Mark."},{"key":"ref_44","doi-asserted-by":"crossref","first-page":"27","DOI":"10.1016\/j.gfj.2017.02.003","article-title":"The effect of the split share structure reform on working capital management of Chinese companies","volume":"33","author":"He","year":"2017","journal-title":"Glob. Financ. J."}],"container-title":["Encyclopedia"],"original-title":[],"language":"en","link":[{"URL":"https:\/\/www.mdpi.com\/2673-8392\/1\/3\/58\/pdf","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2025,10,11]],"date-time":"2025-10-11T06:41:50Z","timestamp":1760164910000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.mdpi.com\/2673-8392\/1\/3\/58"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2021,8,6]]},"references-count":44,"journal-issue":{"issue":"3","published-online":{"date-parts":[[2021,9]]}},"alternative-id":["encyclopedia1030058"],"URL":"https:\/\/doi.org\/10.3390\/encyclopedia1030058","relation":{},"ISSN":["2673-8392"],"issn-type":[{"value":"2673-8392","type":"electronic"}],"subject":[],"published":{"date-parts":[[2021,8,6]]}}}