Cryptocurrency Q&A
Is lower NWC better?
Is lower NWC better?
Carlo
Wed Oct 30 2024
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7 answers
2150
I'm wondering if having a lower net working capital (NWC) is considered better. I'm curious about the financial implications and benefits, or drawbacks, of maintaining a lower NWC for a business.
7 answers
ShintoSanctuary
Thu Oct 31 2024
The size of the net working capital is also indicative of a business's financial health.
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Isabella
Thu Oct 31 2024
A business's ability to meet its current obligations can be gauged by its net working capital.
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emma_anderson_scientist
Thu Oct 31 2024
A larger net working capital typically means that the business has more resources available to cover its short-term obligations.
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StormGalaxy
Thu Oct 31 2024
When the net working capital figure is zero or higher, it indicates that the business has sufficient funds to cover its short-term liabilities.
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KimchiQueenCharm
Thu Oct 31 2024
This provides a buffer against unexpected financial challenges and helps the business maintain its operations without facing liquidity issues.
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