Net working capital is positive if short-term assets exceed liabilities. Yearly net working capital change occurs from balance sheet variations. A significant increase in accounts payable can reduce ...

This article is part of a continuing series on recurring issues of critical importance to sellers in private company M&A. Previous topics include equity rolls. Net Working Capital (“NWC”) targets and ...

Capital expenditures (CAPEX) and net working capital are both essential for the short-term and long-term success of a company. However, there are distinct differences between the two metrics. Net ...

Net working capital (“NWC”) is often a highly scrutinized component in M&A deals and can significantly impact the purchase price. NWC represents the liquidity a company needs to run its day-to-day ...

Understanding working capital as a small business owner can help you grow your business or take advantage of bigger opportunities. You can use this and other financial ratios to better understand your ...

Gregory Milano is founder and CEO of Fortuna Advisors LLC and author of Curing Corporate Short-Termism, Future Growth vs. Current Earnings. Many executives, especially those with a finance background, ...