How to calculate working capital from current assets and current liabilities in the balance sheet?

In this session, you covered the working capital ratio wherein you took the current liabilities figure from the domino's balance sheet as 100 cr. But on closer look at the balance sheet (liabilities side), there is a seperate figure of 45 crores - 2009, head current liabilities and provisions. So isnt the working capital only 33 crores - 45 crores instead of the assumed figure of 33 -100 crores. If it is actually 33 - 45, What does it signify ? - 9 crores better than - 67 crores ? Thank you. Aditya

1 Answer(s)


Aditya, -67 crore working capital is much better than -9 crore working capital in the retail food business. That means that Dominos has an extra 58 crores (67-9) in cash to rotate in the business.

The Rs.100 crore we took as a liability was only a rough assumption leaving aside the provisions.