Working capital is the difference between current assets and current liabilities. It measures a business’s short-term financial health and ability to meet operational expenses and short-term debt. Positive working capital suggests liquidity, while negative working capital may indicate cash flow issues or over-reliance on short-term borrowing.
This ratio measures how efficiently a business uses its working capital to generate revenue. Calculated as Net Sales ÷ Average…
A write-down is a reduction in the book value of an asset when its fair market value falls below the…
This inventory valuation method calculates the cost of goods sold and ending inventory based on the average cost of all…
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