Working capital is the amount of money a company has available in short-term liquid assets. It determines a company’s immediate liquidity and is often used to manage cash flow and for other forms of ...

When you’re buying or selling a business, the working capital formula is never as simple as current assets minus current liabilities. The buyer wants as much working capital as he can get and the ...

Working capital is a measure of operating liquidity and refers both to cash on hand and assets a business can quickly convert to cash. Working capital provides the funds necessary to pay operational ...

The extent to which an increase in revenue will affect your company's working capital depends on how efficiently your business operates. If your company is already profitable, then more revenue should ...

When selling your business in the lower middle market (more than $2 million in enterprise value), the value is usually based on a financial calculation — a multiple of EBITDA (earnings before interest ...

Barclay Palmer is a creative executive with 10+ years of creating or managing premium programming and brands/businesses across various platforms. Thomas J. Brock is a CFA and CPA with more than 20 ...

A fundamental flaw in U.S. GAAP and IFRS financial reporting standards distorts the calculation of working capital and the current ratio, resulting in a significant understatement in most companies’ ...

Glenn Wilkins is a journalist for Baystreet.ca. He has 30+ years of journalism experience in various media outlets. Natalya Yashina is a CPA, DASM with over 12 years of experience in accounting ...

To succeed in today’s disrupted business environment, finance teams need to consider all of their untapped sources of value. Thriving in highly changeable market conditions means finding new ways of ...

For B2B sellers, extending credit to customers always carries a degree of risk — payments could be delayed, or worse yet delinquent, jeopardizing working capital. But in an economic crisis, that risk ...