Glossary
What is Working Capital (in Inventory)?
Last updated July 2026
Definition
Working capital is the cash tied up in day-to-day operations. For distributors, inventory is usually its single largest component, which is why freeing inventory frees cash.
Every dollar removed from excess inventory is a dollar returned to working capital — available to fund growth, pay down debt, or improve return on invested capital.
The goal is to release that cash without hurting service: cut the SKUs that never sell, not the ones customers count on.
Part of Working capital & inventory turns.
See what your inventory is really costing you.
Tell us where the cash is trapped — excess stock, idle surplus, slow RFQs — and we'll show you the outcome Maintained can unlock.