Low back of profits in negative working capital
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aron
Apprentice
Joined: 08 Jun 2005
Posts: 4
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 Posted: 08/07/08 - 07:54 Post subject: |
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| I would like to gain some further insights in the side effects a company experiences when there is a negative working capital. In other words, I want to find out what the consequences of a negative working capital. Low back of profits are something that happens a lot, I have understood. Who can tell me how that can be prevented? |
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claudianus
Apprentice
Joined: 17 Apr 2006
Posts: 5
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| Posted: 09/06/08 - 00:26 Post subject: |
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| It is my strong opinion that a negative working capital is one of the most threatening situations that a company can possible experience. The profit rate may well have gone down, but if that is what is focused on, rather than the negative working capital, the company will soon head for its grave. First of all, the negative working capital needs to be eliminated. |
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