- This topic has 1 reply, 2 voices, and was last updated 10 months ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
PQ Awards Nominations
Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › CIMA Forums › regarding working capital f1
Sir you mentioned higher working capital has higher liquidity but lower profitability but when you talked about conservative approach you talked about holding higher working capital but the liquidity was lower and the profitability was higher? is there something I am not understanding?
Working Capital = Current Assets – Current Liabilities
The working capital formula tells us the short-term liquid assets available after short-term liabilities have been paid off. It is a measure of a company’s short-term liquidity and is important for performing financial analysis, financial modeling, and managing cash flow.