Capital expenditures (CAPEX) and net working capital are both essential for the short-term and long-term success of a company. However, there are distinct differences between the two metrics. Net ...

Discover key elements that reduce operating cash flow, including declining net income, inefficient inventory turnover, and ...

Net working capital (“NWC”) is often a highly scrutinized component in M&A deals and can significantly impact the purchase price. NWC represents the liquidity a company needs to run its day-to-day ...

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, ...

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 ...

Privia Health's asset-light, high turnover model is hampered by persistently thin margins, negative economic profit, and a lengthy cash conversion cycle. Despite revenue growth and onboarding new ...

Although Working Capital - which refers to the funds a business uses in its day-to-day operations - is seen as a relatively mundane metric, we think it’s quite useful to identify quality businesses.