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Only ignorant investors can get fooled by large account payables. It's not a source of capital..
by epa 13y ago
Only ignorant investors can get fooled by large account payables. It's not a source of capital..
- fspeech 13y agoIt is if it is stable enough (that is the negative working capital). In other settings (such as insurance) it is also known as float. Negative working capital is great if you can get it and keep it. The problem with the associated fcf is that the fcf is the derivative, literally. So if the working capital stops going more negative the associated fcf goes to zero.