When analyzing a balance sheet, the Working capital is one of the key indicators to assess the health of our company. Maiobra Fund (or "Working Capital" in English) is simply that part of current assets is financed by long-term debt or, more colloquially, it would be the surplus of capital (stocks, realizable cash ...) that remains after dealing with our short-term commitments.
As previously mentioned, if our Working capital is "what remains" after paying our immediate obligations ... We are assuming that is positive, and in fact the theory analysis traditional balances, it should be: in this way we would leave a cash security, a small remnant would prove that our current management is adequate and that is not likely to have liquidity problems .
Is it better to be the case? Well, like everything in life depends ... A positive working capital can give the impression of solidity ( especially the bank without to take the next loan ... ) but in the end, what it indicates is that we pay before we charge, which can give an idea that we have not fought enough with suppliers when negotiating payment terms, on the contrary, a fund negative working not in love any risk analyst but allowed to grow and that by delaying payment to suppliers ( that is growing the short term due to the liabilities side ) I have resources available on the company to open a new line of business, research a new product or take out a new project.
By definition, young companies tend to have positive working capital , because not enjoy an established track record in the sector, suppliers are likely to ask you to pay in cash and products, however, want to sell at first, must "stretch the hole" to the granting of pay periods higher to new customers. In any case, the optimal structure of the consolidated balance sheet of a company should include a financial maneuver that tended to be neutral or slightly positive or negative because, as we have seen a very positive can result in payment periods are not traded good and one very negative to the idea that we can meet our commitments. Nor should we forget accounting illusion: In the active stocks are valued at cost and liabilities, accounts payable real value. Any analyst should think about it before doing the scoring for the next operation ...
Greetings!
www.NLSasesores.com
As previously mentioned, if our Working capital is "what remains" after paying our immediate obligations ... We are assuming that is positive, and in fact the theory analysis traditional balances, it should be: in this way we would leave a cash security, a small remnant would prove that our current management is adequate and that is not likely to have liquidity problems .
Is it better to be the case? Well, like everything in life depends ... A positive working capital can give the impression of solidity ( especially the bank without to take the next loan ... ) but in the end, what it indicates is that we pay before we charge, which can give an idea that we have not fought enough with suppliers when negotiating payment terms, on the contrary, a fund negative working not in love any risk analyst but allowed to grow and that by delaying payment to suppliers ( that is growing the short term due to the liabilities side ) I have resources available on the company to open a new line of business, research a new product or take out a new project.
By definition, young companies tend to have positive working capital , because not enjoy an established track record in the sector, suppliers are likely to ask you to pay in cash and products, however, want to sell at first, must "stretch the hole" to the granting of pay periods higher to new customers. In any case, the optimal structure of the consolidated balance sheet of a company should include a financial maneuver that tended to be neutral or slightly positive or negative because, as we have seen a very positive can result in payment periods are not traded good and one very negative to the idea that we can meet our commitments. Nor should we forget accounting illusion: In the active stocks are valued at cost and liabilities, accounts payable real value. Any analyst should think about it before doing the scoring for the next operation ...
Greetings!
www.NLSasesores.com
0 comments:
Post a Comment