Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 2 terms
When a business collects from customers before it has to pay its suppliers.
Suppliers effectively fund the business, so growth releases cash instead of consuming it — the position of the strongest consumer companies and retailers.
Current assets minus current liabilities — the capital tied up in day-to-day operations.
Negative working capital is often excellent: customers pay you before you pay suppliers.