Trade Working Capital


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Trade Working Capital

The amount of money a company has on hand, or will have for a given year. Trade working capital is calculated by subtracting current liabilities from current assets. That is, one takes the value of all debts and obligations for the current year and subtracts that total from the value of all cash and assets that might reasonably be converted into cash in the current year. This is a good measure of the short- and medium-term financial health of a company, and may indicate by how much it can expand its operations without resorting to borrowing or another capital raising tactic.
References in periodicals archive ?
Trade working capital was $167 million at June 30, 2015 compared to $146 million at December 31, 2014.
The presentation of trade working capital and average trade working capital is intended to supplement investors' understanding of our operating performance.
Reconciliation of Non-GAAP Measures: Celanese discloses trade working capital and net debt, which are non-GAAP financial measures.
In an effort to provide investors with additional information regarding the company's results as determined by GAAP, the company also discloses trade working capital and net debt, which are non-GAAP financial measures that provide investors for additional insight into the ongoing operations of the business.
Trade working capital was reduced by $97 million year-to-date.
We believe that ongoing income, ongoing earnings per share, trade working capital, and average trade working capital best reflect our ongoing performance and business operations during the periods presented and are more useful to investors for comparative purposes.
The press release furnished herewith uses the non-GAAP financial measures of ongoing net income, trade working capital and average trade working capital.
Net financial debt and trade working capital reduced about 30%
Despite tougher business conditions, we lowered trade working capital by 12per cent, or Euro 117 million, and incurred lower cash outflows for special charges.
Despite tougher business conditions, we lowered trade working capital by 12%, or euro 117 million, and incurred lower cash outflows for special charges.
The trade working capital to sales ratio improved to 20 percent compared with 22 percent a year ago.
In addition, we continue to reduce our net trade working capital investment in relation to our billings and to redeploy low-return assets into acquisitions and strategic investments.