Jan 17, 2019
THREE NUMBERS TO KNOW
I. Working Capital: The capital available for the business to do
its work
[CURRENT ASSETS - CURRENT LIABILITIES] gives you a dollar amount,
but t only means something if you put it into perspective with a
ratio. So we divide that number by our GROSS REVENUE. Let’s plug in
a couple of examples...
082: Finance on the farm
Jan 17, 2019
THREE NUMBERS TO KNOW
I. Working Capital: The capital available for the business to do
its work
[CURRENT ASSETS - CURRENT LIABILITIES] gives you a dollar amount,
but t only means something if you put it into perspective with a
ratio. So we divide that number by our GROSS REVENUE. Let’s plug in
a couple of examples...