Working capital management is a pretty common operational stream line technique private equity firms use post acquisition to improve returns. This is a bit eso

Working capital management is a pretty common operational stream line technique private equity firms use post acquisition to improve returns. This is a bit esoteric but next here's the funny part. The definition of working capital is commonly (and I would argue incorrectly) current assets minus current liabilities. In the alternate definition, it goes non-cash current assets less non-debt current liabilities. Because with the alternate definition you're not incentivized to push down your cash balance artificially. This probably isn't a huge reason Hertz struggled, but having more cash on hand always helps.