working capital

Essay specific features

 

Issue:

Miscellaneous

 

Written by:

William W

 

Date added:

June 22, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 656

 

Was viewed:

10098 times

 

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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...
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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...
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