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2 Reasons Working Capital is so Misunderstood

Avatar Posted by CFOWISE under Finance
From http://www.cfowise.com 5466 days ago
Made Hot by: mssux on December 5, 2009 6:41 am
Although the phrase working capital is common in business and finance circles, it is often very misunderstood.  Is it good to have a high or low balance of working capital? In most cases, this articles points out that less is more!


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Written by CFOWISE
5464 days ago

I completely agree. The intent of the working capital days ratio is to force us to understand each of the moving parts in the cash flow conversion cycle of a business. I think your comment is right on.
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