Receiving deferred revenues can be an financial headache. Because deferred revenue gives you cash for a future liability, you must be careful in properly accounting for the transfer. If you do not ...

Net working capital is positive if short-term assets exceed liabilities. Yearly net working capital change occurs from balance sheet variations. A significant increase in accounts payable can reduce ...

In a business acquisition, the buyer should receive sufficient net working capital, or (NWC), to operate the business in its ordinary course. The assessment and negotiation of NWC is important; ...

Net working capital (“NWC”) is often a highly scrutinized component in M&A deals and can significantly impact the purchase price. NWC represents the liquidity a company needs to run its day-to-day ...

A company's net working capital equals its current assets minus its current liabilities. Net working capital changes each accounting period as individual accounts classified as current assets and ...

Gregory Milano is founder and CEO of Fortuna Advisors LLC and author of Curing Corporate Short-Termism, Future Growth vs. Current Earnings. Many executives, especially those with a finance background, ...

Textbooks and financial courses often state that a healthy balance sheet is characterized by, among other things, positive net working capital. Conversely, negative working capital may indicate ...