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Working Capital
(Anand)

Publicidade
Working capital is the amount of funds required to finance the company''s operations in addition to the capital invested in the fixed assets. It is the difference between current/short term assets (client receivables, stock, etc.) and current/short term liabilities (trade creditor, tax and social security liabilities, etc.). 

   Working Capital=Current Asset- current Liability

  Current assets and liabilities usually exclude cash and equivalents or short term financial debt. A company''s EBIT margin should exceed its working capital to sales ratio in order to be considered self-financing.



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