Negative working capital

Negative working capital

Occurs when current liabilities exceed current assets, which can lead to bankruptcy.
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Discussing the global private schools market trends and practices, Robert Lytle, partner and co-head of the Education Practice at the Parthenon Group, said the K-12 is a good investment due to its long-term revenue viability, greater demand, prices are rising higher than inflation and because it has negative working capital.
Hear Atlast has accumulated losses, as well as negative working capital and negative cash flows from operations, which raise substantial doubt about the company's future operation.
With the closing of the SPA, specifically, Galaxy will see its balance sheet transition from material negative working capital to a pro forma positive cash balance of approximately A$62 million.
8 million) capital boost in September 2011, but said it would need an additional U9 million to cover its negative working capital and survive the winter.
The company has issued a report to US regulatory authorities which said: "We have received a report from our independent registered public accounting firm on our 2011 financial statements that contains an explanatory paragraph stating that our recurring losses from operations, negative working capital, and stockholders' capital deficiency, and the uncertainty around our ability to raise sufficient capital, raise substantial doubt about our ability to continue as a going concern.
Moreover, with no inventory and no accounts receivable (since even credit cards clear in a day), George will have a negative working capital for the next five years.
However, in view of the expected negative working capital, the analyst reduced her projections for the company's free cashflow in 2011 and 2012.
Investec Growth & Acquisition Finance has noted a surge in demand from suppliers hampered by negative working capital.
In addition to the lowering of its break-even point to around 7 billion euros in sales and its negative working capital, Valeo has three other levers which will contribute to improving its operating margin by 3 points as of 2013:
We've seen very very strong cash flow, over pounds 70 million of cash, we're still running with negative working capital, we've got about 15 debtor days so we're collecting our cash and that allows to increase the dividend up to 7.
As a result, Dell enjoys negative working capital and, the more it grows, the more its suppliers finance its growth.
Also, Questex will assume the deferred revenue liabilities associated with the acquired assets and will receive an adjustment for the negative working capital of the acquired properties.
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