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Jan 13, 2023Liked by Anon Investor

Brother let me tell you I just had a better understanding of working capital thanks to this post, what still confuses me is why a negative working capital is positive for the business.

And speaking of business , how could I apply and analyze working capital to a small local business ?

The Following is an actual example:

I have a small local coffee shop in Playa del Carmen (greetings from Mexico ) , so I have no accounts receivable , I owe my coffee and dairy supplier and I have inventory as well but I have no accounts receivable.

That said , how should I analyze and measure working capital ?

Muchas gracias AI !

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