noun
circulating capital
Economic term for capital used in the day-to-day operations of a business, such as cash, inventory, and accounts receivable.
企業は流通資本を効率的に管理する必要がある。
Companies need to manage circulating capital efficiently.
固定資本 (fixed capital) refers to long-term assets like machinery and buildings, while 流通資本 (circulating capital) is used up in the production process.
Compound of 流通 (circulation) and 資本 (capital), a direct translation of the English economic term 'circulating capital'.