Net working capital is related to CAPEX, though indirectly. For example, a company that generates positive net working capital consistently should have the financial viability to either make ...

Investors use free cash flow to help assess a company's performance and what lies ahead. Issues in free cash flow often ...

Net working capital is calculated by subtracting a company's current liabilities from its current assets.

For example, if your business has $98,000 in short-term liabilities and only $60,000 in current assets, you'll have a hard time making ends meet. An increasing working capital generally means a ...

A net investment in operating capital is often payments that come out of working capital. For example, let's say you want to purchase equipment.

Learn why changes in net working capital (NPV) should be included in net present value calculations for analyzing a project's return on investment.

In a business acquisition, the buyer should receive sufficient net working capital, or (NWC), to operate the business in its ordinary course. The assessment and negotiation of NWC is important; ...

Free cash flow to equity is one method for assessing a company's financial health and can be used in more complex analyses. Read on to learn more.

Net-net-working-capital Net-current-asset-value is not the only liquidation value Graham developed during his career.

Coca-Cola and PepsiCo are interesting examples of excellent working capital management and consequently strong free cash flow. Read more on how to better assess these companies and others.

For example, a company that generates positive net working capital consistently should have the financial viability to either make capital expenditures or obtain financing for capital expenditures.

Net working capital is a useful tool for analyzing exactly what's driving a company from one year to the next.