Meaning of working capital
A measure of both a company's efficiency and its short-term financial health. The working capital ratio is calculated as:
Positive working capital means that the company is able to pay off its short-term liabilities. Negative working capital means that a company currently is unable to meet its short-term liabilities with its current assets (cash, accounts receivable and inventory).
Even in a difficult economic environment, Our Company has continued to drive sales and keep operating expenses to a minimum. So there is no need to wary about working capital requirement to the company because company has a sufficient fund to take its working capital requirement
A measure of both a company's efficiency and its short-term financial health. The working capital ratio is calculated as:
Positive working capital means that the company is able to pay off its short-term liabilities. Negative working capital means that a company currently is unable to meet its short-term liabilities with its current assets (cash, accounts receivable and inventory).
Even in a difficult economic environment, Our Company has continued to drive sales and keep operating expenses to a minimum. So there is no need to wary about working capital requirement to the company because company has a sufficient fund to take its working capital requirement