Tag: Current Ratio

  • Working Capital Cycle

    Working Capital Cycle

    The college textbook definition of working capital is current assets minus payables and accrued expenses. The term explains the dollar value of flexibility a business operation has to take advantage of immediate opportunities or endure sudden or long-term setbacks. Since it is a balance sheet based formula the value is a function of a moment…

  • Working Capital Management – Fundamentals

    Working Capital Management – Fundamentals

    Working capital management is a function of finance whereby management ensures adequate cash is available to meet operational needs over the typical working capital cycle.