A company’s potential to withstand any unexpected crisis or downturn can be measured through two major metrics: cash flow and working capital. These two metrics denote distinct aspects of the company’s financial health. While cash flow indicates how much fund the company consumes or generates in a specific period, working capital refers to the difference between company’s current assets and current liabilities. Current assets include cash and several other assets that can easily be liquidated into cash in a year and current liabilities include accounts payable, payroll and accrued expenses. A company that maintains a positive working capital most ...Read more

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