Do you have enough working capital in your business? Maybe not, and you would probably like to have more – right? Working capital is a metric that small business owners should be tracking on a weekly ...]]>

Our quiz and worksheet provides a handy way to gauge your knowledge when it comes to the formula and use of the working capital ratio. When you take this quiz, you'll be asked about how to calculate t...]]>

The analyst ends up with the potential dividend, or free cash flow to equity. To calculate FCFE, subtract (net capital expenditures + change in non-cash working capital) from the company's after-tax o...]]>

A company's net working capital is the amount of money it has available to spend on its day-to-day business operations, such as paying short term bills and buying inventory. Net working capital equals ...]]>

Using the tools presented in this article, they can calculate the real impact of any proposed changes in their working capital on the rate at which they can grow. But if prices were held constant, the ...]]>

Note: Many companies use cost of goods sold instead of net sales when calculating DPO and DIO. REL Consultancy Group, which conducts CFO’s survey, uses net sales across each working capital component ...]]>

This week's Supply Chain Trivia Question, Only from SCDigest! Each week, we take the trivia question from our weekly on-line newsletter and post it on our web page. To view past issues of Supply Chain ...]]>

Working capital is another problem. GE is nowhere close to fair value. It is simple math ... If you tweak down some key assumptions in the excel calculator shown above -- in order to reflect a yield t...]]>

Working capital requirements are typically built into an Excel model you’ll use to calculate ROI, so you don’t need to worry about them. But you do need to understand the importance of comparing cash ...]]>