Textbooks and financial courses often state that a healthy balance sheet is characterized by, among other things, positive net working capital. Conversely, negative working capital may indicate ...

Net working capital is positive if short-term assets exceed liabilities. Yearly net working capital change occurs from balance sheet variations. A significant increase in accounts payable can reduce ...

Gregory Milano is founder and CEO of Fortuna Advisors LLC and author of Curing Corporate Short-Termism, Future Growth vs. Current Earnings. Many executives, especially those with a finance background, ...

A company’s working capital turns negative when its current liabilities, such as dues payable, outweigh its current assets, such as cash, inventory, and receivables. One may be tempted to think that ...