Operating Assets


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Operating Assets

Another term for working capital.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Working Capital

The amount of money a company has on hand, or will have, in a given year. Working capital is calculated by subtracting current liabilities from current assets. That is, one takes the value of all debts and obligations for the current year and subtracts that from the value of all cash and assets that might reasonably be converted into cash in the current year. This is a good measure of the short and medium-term financial health of a company, and may indicate by how much it can expand its operations without resorting to borrowing or another capital raising tactic. Working capital is also called operating assets or net current assets.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
The holding company would not be entitled to deduct the stock as worthless until this asset had been disposed of along with the operating assets.
Under the stock and asset purchase agreement MedQuist Inc will acquire substantially all of the US and Canadian operating assets and selected liabilities of Spheris for approximately USD75.2m in cash, while another CBay Holdings subsidiary, CBay Inc, will acquire all of the outstanding ownership interests of Spheris India Private Limited in exchange for assuming its liabilities and a liability of Spheris related to Spheris India Private Limited.
Disposition of operating assets. On the income statement, these gains and losses are excluded from operating income.
M-Wave chairman and CEO Joe Turek and divisional president Robert Duke will acquire the operating assets of M-Wave Inc.
Changing the amount of debt does not affect the operating assets or the profit before interest expense and, therefore, does not affect RNOA.
GreenMan Technologies, Lynnfield, MA, a recycler of over 30 million scrap tires per year in the U.S., has executed a letter of intent containing an exclusive option to acquire certain operating assets of Tires Into Recycled Energy and Supplies (TIRES).
Economic Value Added and Measuring Operating Assets in Place
But the Federal Reserve can impose rules on banking institutions, on matters such as forcing them to disperse their operating assets to multiple locations to avoid paralysis in the wake of an attack.
Based on the facts and the above provisions, the IRS argued that the deemed sale of H&C's operating assets was not a sale of property used, of held for use, in Dover U.K.'s business.
Ohlson (1995) and Feltham and Ohlson (1995), however, show that future profitability and firm value depend on growth in net operating assets as well as current profitability.
(WaMu) has completed its acquisition of certain operating assets of Jacksonville, Florida--based HomeSide Lending Inc., the U.S.

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