Understanding working capital as a small business owner can help you grow your business or take advantage of bigger opportunities.

Net working capital is calculated by subtracting a company's current liabilities from its current assets. This measure gives an idea of a company's short term capital and its ability to quickly ...

When selling your business in the lower middle market (more than $2 million in enterprise value), the value is usually based on a financial calculation — a multiple of EBITDA (earnings before interest ...

A company's net working capital is the amount of money it has available to spend on its day-to-day business operations, such as paying short term bills and buying inventory. Net working capital equals ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Andy Smith is a Certified Financial Planner (CFP®), licensed realtor and ...

Working capital represents a company’s ability to pay its current liabilities with its current assets. The figure for working capital gives investors an indication of the company’s short-term ...

Working capital is a measure of operating liquidity and refers both to cash on hand and assets a business can quickly convert to cash. Working capital provides the funds necessary to pay operational ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Halfpoint Images / Getty Images CAPEX involves long-term investments in ...

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 ...

If your business is falling short on cash, and it's getting harder to (literally) keep the lights on, a working capital loan can be a short-term answer to your financial prayers. This type of loan can ...