Cryptocurrency Q&A
Is increase in NWC good?
Is increase in NWC good?
CherryBlossomBloom
Tue Nov 05 2024
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6 answers
1110
I'm wondering if an increase in net working capital (NWC) is considered a positive or beneficial outcome for a business. Could it indicate better financial health or efficiency, or might there be potential downsides to consider as well?
6 answers
SsangyongSpirit
Wed Nov 06 2024
In financial analysis, working capital is a key metric used to gauge a company's health.
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Riccardo
Wed Nov 06 2024
An increase in Net Working Capital signifies an enhancement in a company's liquidity.
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Sara
Wed Nov 06 2024
Companies with negative working capital may struggle to meet their short-term obligations.
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SumoMighty
Wed Nov 06 2024
Conversely, those with positive working capital are typically in a better position to fund their day-to-day activities.
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CryptoMystic
Wed Nov 06 2024
This improvement often reflects the company's ability to manage its existing resources more effectively.
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