What does a Negative Working Capital Cycle of a Company mean to the Company's Shareholders?

Working Capital Management Corporate Finance Cost Accounting Internal Audit IFRS

Question added by Khalid Noor , Accounting Manager , FedEx
Date Posted: 2013/11/20

Upvote (3) Views (4) Followers (1) Answers (1) Report Question

Write an Answer
Register now or log in to answer.

1 Answers

by Nitin Gupta, ACA , FP&A , Rockwell Automation

This indicates the Huge Customer demand for its products or a very Strong Brand. Only a few companies have this favorable situation and all these Shares have been Huge Multibagger in the past. (Eg: Colgate, VST Industries, HUL etc) Please refer below link for further information. http://www.hbjcapital.com/2012/07/what-does-negative-working-capital.html

Upvote (3)

Downvote Reply () Report

More Questions Like This

A company's net sales for a recent year were $2,400,000 and its average amount of working capital during the year was $400,000,?
Top Answer: working capital turnover ratio be calculated as follows: net annual sales divided by the average amount o ... See More

Answers (30)
What's the difference between capital expenditures (CAPEX) and net working capital?
Top Answer: The Capital expenditures is the amounts paid for long term benefits like the payment for fixed assets , a ... See More

Answers (28)
With non-audited financial report , how can you prove sales proceed in calculating working capital requirment showing working capitital assesment ?
Top Answer: To check whether the sales figure is correct in a non-audited balance sheet, if the bank uses only one cu ... See More

Answers (1)
Which of the following is not the internal factor of determining working capital?
Top Answer: Technological developments See More

Answers (4)

Products By Bayt.com

Use Our Mobile App

Start networking and exchanging professional insights

What does a Negative Working Capital Cycle of a Company mean to the Company's Shareholders?

Popular Searches

More Questions Like This