NFO and Working Capital

David Frodsham and Heinrich Liechtenstein
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Heinrich Liechtenstein: IESE

Chapter Chapter 3 in Getting Between the Balance Sheets, 2011, pp 21-27 from Palgrave Macmillan

Abstract: Abstract Working capital (WC) is the funding available to run the business, hence the name. It is often defined as current assets minus current liabilities. Current assets flow in and out of a company as it conducts its business, including cash, receivables and inventory. Current liabilities are similarly part of the normal business cycle. Payables (purchases of goods and services from suppliers), as well as taxes that have not yet been paid together with any bank credit line are all current liabilities.

Date: 2011
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DOI: 10.1057/9780230294974_6

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