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Sir John is increase in working capital an increase in liquidity? although I know if current assets contain cash only then it would be true but I am not sure if it hold true for inventory and receivables. if having too much inventory reducing the liquidity? Does liquidity mean cash only?
If you want to ask the tutor something directly please use the ask the tutor forum as this forum is primarily designed for students to help one another. Please also try and give a descriptive title related to subject you are asking about. For example, for the above you could title it as “working capital and liquidity” or “relationship of working capital and liquidity”.
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