working capital, liquidity and cashflow

This topic has 1 reply, 2 voices, and was last updated 7 years ago by Ken Garrett.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
April 26, 2019 at 10:10 am #514200
jihun lee
Member
- Topics: 117
- Replies: 51
Can i ask what is the difference between working capital issue, liquidity issue and cashflow issue ? can 3 arose at the same time when a company has no cash ?
April 26, 2019 at 11:49 am #514211
Ken Garrett
Keymaster
- Topics: 10
- Replies: 10661
They are all pretty much the same – most of the time.

WC, if measured by the current ratio, could look good because there is lots of inventory but liquidity could be poor if within current assets there was little cash.
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.