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 ?
Reconciliation of Non-GAAP Measures: In an effort to provide investors with additional information regarding the company's results as determined by GAAP, Celanese also discloses trade working capital and net debt, which are non-GAAP financial measures.
For the same period, trade working capital increased 13% to EUR697 million due to a decline in trade payables due to currency effects and increased inventory levels in the Acetate Products' segment.
Reconciliation of Non-GAAP Measures: Celanese discloses trade working capital and net debt, which are non-GAAP financial measures.
Reconciliation of Non-GAAP Measures: The company discloses trade working capital and net debt, which are non-GAAP financial measures.
Trade working capital - trade receivables plus inventories minus trade payables - increased slightly, mainly due to higher trade receivables associated with higher sales in the first quarter compared to the fourth quarter of last year.
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.
Cash flow was a strong $86 million compared to a use of cash of $133 million last year reflecting a $97 million reduction in trade working capital.