Guide to Change in Net Working Capital
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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
What Is Working Capital?
Positive Working Capital
Negative Working Capital
What Is Net Working Capital?
What Are Changes in Net Working Capital?
What Causes Changes in Working Capital?
Credit Policy
Accounts Payable Payment Period
Collection Policy
Growth Rate
Inventory Planning
Purchasing Practices
Hedging
What Impacts Can Various Changes in Working Capital Have?
Positive Impacts
Negative Impacts
Calculating Change in Working Capital
How to Calculate Changes in Net Working Capital
Why Calculating Changes in Working Capital Is Important
The Takeaway
3 Small Business Loan Tips
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