working capital deficit
[ˈwɜːrkɪŋ ˈkæpɪtəl ˈdɛfɪsɪt]
nounpl: working capital deficits
déficit de capital de giro
1. A financial condition where a company's current liabilities exceed its current assets, indicating insufficient liquid resources to meet short-term obligations
The company faced a working capital deficit of $2 million after the unexpected expense.
A empresa enfrentou um déficit de capital de giro de $2 milhões após a despesa inesperada.
2. A situation where a business lacks enough short-term assets to cover its immediate debts and operational expenses
The startup's working capital deficit forced management to seek additional financing.
O déficit de capital de giro da startup forçou a administração a buscar financiamento adicional.
In Brazilian business environments, a working capital deficit is a serious concern discussed in corporate board meetings and financial reports. Companies experiencing this condition often seek bridge financing or restructure their operations. The term is essential in understanding financial health in corporate Brazil, where cash flow management is critical for business survival. In the United States, this concept is central to credit analysis and is closely monitored by creditors, investors, and financial institutions.
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