Understanding working capital as a small business owner can help you grow your business or take advantage of bigger opportunities.

This article is part of a continuing series on recurring issues of critical importance to sellers in private company M&A. Previous topics include equity rolls. Net Working Capital (“NWC”) targets and ...

Companies need capital to remain operational and grow, and the amount of capital a company has is a strong indicator of its financial health. Working capital can be divided into two categories: gross ...

Net working capital (“NWC”) is often a highly scrutinized component in M&A deals and can significantly impact the purchase price. NWC represents the liquidity a company needs to run its day-to-day ...

When acquiring or selling a company, many nuances exist in various stages of the process, some of which are not readily apparent on their face. One of those nuances is the interplay between accounts ...

A business can have great products, strong sales, and even loyal customers, but without enough working capital, things can quickly stall. Better management of working capital can improve a company's ...

On February 20, 2025, Morningstar.com released an enhanced methodology for Free Cash Flow. Free cash flow represents a company's operating cash flow net of changes in net working capital and capital ...