Zusammenfassung der Ressource
Balance Sheet
- Working Capital
- The Working Capital is defined as the current capital used in day to day
business operations for a company
- Working Capital is used to measure both company efficency and it´s
short term financial health
- It also can denote the operating liquidity for a business
- Net Working Capital
- Can be defines easily as the current assets minus current liabilities
- It will show if our current assets will be able to pay the current liabilities
- NWC might be missleading due to the following concepts
- Lines of Credit
- Anomalies
- Liquidity
- Current Accounts required to get the Net Working Capital
- Current Assets
- Current liabilities
- Management of Net Working Capital
- A managerial accounting strategy focusing on maintaining efficient levels of both components of
working capital.
- Its split into 2 concepts in respect to each other
- Current Assets
- Current Liabilities
- Working capital management ensures a company has sufficient cash flow
in order to meet its short-term debt obligations and operating expenses.
- Profitability and Risk
- Used to project future profitability based on an analysis of
past performance
- Cross-Selection analysis of Risk
- Competitors
- Industry Averages