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working capital
Essay specific features
Written by:
William W
Date added:
June 22, 2013
Level:
University
Grade:
A
No of pages / words:
3 / 656
Was viewed:
10090 times
Rating of current essay:
Essay content:
The more working capital, the less financial strain a company experiences. By studying a company's position, you can clearly see if it has the resources necessary to expand internally or if it will have to turn to a bank and take on debt.
Working Capital is the easiest of all the balance sheet calculations...
displayed 300 characters
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Here's the formula:
Current Assets - Current Liabilities = Working Capital
One of the main advantages of looking at the working capital position is being able to foresee any financial difficulties that may arise. Even a business that has billions of dollars in fixed assets will quickly find itself in bankruptcy court if it can't pay its monthly bills...
displayed 300 characters
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