Working capital represents a company’s ability to pay its current liabilities with its current assets. The figure for working capital gives investors an indication of the company’s short-term ...

Textbooks and financial courses often state that a healthy balance sheet is characterized by, among other things, positive net working capital. Conversely, negative working capital may indicate ...

The extent to which an increase in revenue will affect your company's working capital depends on how efficiently your business operates. If your company is already profitable, then more revenue should ...

Capital expenditures (CAPEX) and net working capital are both essential for the short-term and long-term success of a company. However, there are distinct differences between the two metrics. Net ...

Understanding working capital as a small business owner can help you grow your business or take advantage of bigger opportunities. You can use this and other financial ratios to better understand your ...

Working capital is the amount of money a company has available in short-term liquid assets. It determines a company’s immediate liquidity and is often used to manage cash flow and for other forms of ...

Gregory Milano is founder and CEO of Fortuna Advisors LLC and author of Curing Corporate Short-Termism, Future Growth vs. Current Earnings. Many executives, especially those with a finance background, ...

Net working capital is positive if short-term assets exceed liabilities. Yearly net working capital change occurs from balance sheet variations. A significant increase in accounts payable can reduce ...