Negative working capital can sometimes bring in cheap funds for a company...
Last updated: 14-Nov-2022•Vikas Vardhan
Negative or low working capital (net current assets) is an undesirable attribute of a company. It means the company is facing a shortage of funds to meet its daily requirements and its ability to meet its debt or trade liability is questionable. But, it seems low working capital can sometimes spell profit too – at least for a few companies. Here is why.
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