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 ?
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 !