Tag's: working capital

Working Capital: Profitability is not Everything.

Be careful of accounting definitions The accounting definition of working capital = current assets – current liabilities. On the surface this has very little meaning. Current assets & liabilities could contain items that is not related to operations. Know your numbers so you know your business Working capital: Internal Vs External Working capital is used to evaluate the efficiency of cash management in meeting the demands of the direct cost of goods/
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