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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. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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