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Why is important to understand a company's operating in determination of working capital adequacy?

Financial Risk
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Question added by Olabode Omiyale , Business Manager (Corporate Banking ) , First Bank of Nigeria
Date Posted: 2015/07/19
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Subhash Saini
by Subhash Saini , Senior Accountant , FGF Group of Companies

Working Capital is a measure of both a company's efficiency and its short-term financial health. Working capital is calculated as:

Working Capital = Current Assets - Current Liabilities

 

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