There is a significant difference between “working capital” and “change in working capital.”
Working capital is a snapshot of a moment in time which measures the level of assets a business has available to meet its short-term obligations. It is not found on the balance sheet as a line item but is calculated easily with several figures which do appear on the balance sheet. Defined simply, working capital is the difference between current assets (cash, inventory, accounts receivable, etc.) and current liabilities (accounts payable, current portion of long term loans, accrued expenses, etc.)
Change in Working Capital
Posted by Exit Promise under FinanceFrom http://exitpromise.com 2981 days ago
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