I'm trying to figure out the ideal level of NWC for my business. Should it be high or low? What are the implications of each option on the financial health and performance of my company?
6 answers
BonsaiLife
Fri Nov 01 2024
Net working capital plays a crucial role in determining a business's solvency and liquidity.
Martina
Thu Oct 31 2024
When net working capital is high, it signifies that the business has ample funds available to meet its short-term obligations.
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Thu Oct 31 2024
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Margherita
Thu Oct 31 2024
This financial health allows the business to operate smoothly and efficiently, without the risk of defaulting on its debts.
InfinityEcho
Thu Oct 31 2024
On the other hand, a negative net working capital indicates that the business may not have enough funds to cover its immediate expenses.