This term means current assets minus current Liabilities.
Working capital measures how much liquid in liquid assets
such as cash a company has available to build its business.
The number can be
positive or negative depending on how much debt the company is carrying.
In General the company that have a lot of working capital
will be more successful since they can expand and improve their operations.
The
companies with negative working capital may lack the funds necessary for
growth.
No comments:
Post a Comment