Investopedia Video: Working Capital

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Working capital is one of the basic metrics used to evaluate a company's financial health. Find out what it can tell you about a stock and learn how to calculate it.
For more content on Working Capital, check out;
Working Capital Works
www.investopedi...
The Working Capital Position
www.investopedi...
Evaluating A Company's Capital Structure
www.investopedi...

[@StevenGregoryJayy]

I love these videos! I wish you had online courses or something. man I love investopedia.

[@BigDickEnergy777]

Really great. Accounting taps this matter really well, the working capital, in the positive scenario, is a little deeper. EX: One company might do better with greater liability than others, depends on the sector, because if you think for a moment, too much short term available money frozen in the company isn't always good, this money could be invested, so it really depends, the analysis here goes a little bit deeper than that, and requires knowledge of market sectors, which is learned by experience and studying.

[@bumpit6163]

I always wonder how they make it that the music fits the video so well...is it made just for it or do they cut the video to fit perfectly to the background music?

[@investopedia]

The video is created to fit the music - glad you enjoy!

[@swaraaswaraa9222]

kzbin.info/www/bejne/aIHbnoqVbqqnqa8

[@shutupidiot16yearsago79]

Thanks for the video ;) I've been following you for a while now for learning stuff related to finance and your explanation never lets me down.Its clear and simple and saves me a hell lot of time.btw had to watch this for my college presentation which i have tom,gotta speak it in front of a lot of dumb heads hopefully I'll do fine because of your explanation thanks ^_^

[@Propertystockbusiness]

Thank you investopedia

[@Coouge]

I LOVE Investopedia videos!

[@swaraaswaraa9222]

kzbin.info/www/bejne/aIHbnoqVbqqnqa8

[@Bellamontaria]

would you have to turn the working capital to a ratio to determine if its good or not?

[@BossChronicles]

if only there was a college major who taught these concepts

[@cxvnreish4615]

Its called Finance lol

[@WallStreetIceCream]

Nah finance and business administration are BS ​@cxvnreish4615

[@Roshan-xn8oy]

Keep up the great work!

[@KhairulAnuar-wc2zy]

is there any different between capital working and net working capital

[@jonathanlindsey7623]

Think of working capital in business just like in a country.

[@mmvhie6723]

tnx for sharing. God bless!

[@shaunakonkel6346]

thank you!!!!!!!!!

[@tiewlayhoon7930]

i love this video

[@JustEPIC19]

God I wish my uni teachers would explain stuff this clear they either overcomplicate things or just don't explain them at all.

[@Ensavoirmoins]

Remember, no single measure tells the whole story 😇😭

[@CalebBrown228]

Thanks! Fun!

[@tayjones8552]

Sad, school would never teach kids this! They teach them about stuff that's not going to benefit their future.

[@sharonsyrett2058]

Actually i'm studying this for my business a level. So technically we do learn these things.

[@tayjones8552]

@@sharonsyrett2058 I meant to say in grade school.

[@franco521]

How can the Liabilities be more than the Assets. Shouldn't this equation hold: Assets = Liabilities + Equity.

[@this.is.lapc506]

Liabilities are based on leveraging. It's the banks' business to get people and enterprises subject to debt: usually debts higher than these can pay in the short term. You can think of over-leveraging as the time when you begin expending more with your credit card than you're actually able to pay with your current income (assuming you have no assets or investments that make any profits to you). You're always leveraging with your credit card, but you need to be careful not to over do it.

[@swaraaswaraa9222]

kzbin.info/www/bejne/aIHbnoqVbqqnqa8

[@lscanlon9908]

Equity is negative in that case. The owners would have to pay out of pocket to satisfy the debtors, or they would have to wait for the business to generate enough assets to balance the liabilities before they could lay claim to any of the assets themselves.

[@johnbrion4565]

Working capital in this video is current assets minus current liabilities. Assets = liabilities plus equity takes into account all assets and liabilities including current and non current.

[@BoxOutCeltics]

So confused as to why anyone downvoted this lol