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How to identify net negative working capital?
In case of working capital calculation is there specific ratio to identify negative working capital company i.e.by comparison of inventory and accounts payable?
Jan 14 2013 01:50 PM
Working Capital = Currents Assets - Current Liabilities.
Negative working capital occurs if the liabilities are higher than the assets. So just this formula will give you that number.
Jan 16 2013 11:14 AM
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