Two companies have the same working capital the debt paying ability of one company is weaker than the other .explain your views?

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What's capital and what's working capital?
Posted by:
Ossama Al-Arabi
18-October-2016

MBA Finance Financial Management

Question added by swathi ramesh
Date Posted: 2016/02/22

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by Deleted user

The working capital got nothing to do with debt paying ability unless you're talking about short term debts. Companies with different methods of acquiring capital will have different abilities, also, the size of the company and its peers for comparison.

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Two companies have the same working capital the debt paying ability of one company is weaker than the other .explain your views?

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