Abstract
The second chapter focuses on working capital and its associated metrics, namely inventory days, accounts receivable and accounts payable days.
It differentiates between working capital and non-cash working capital from operations. Working capital management is essential to provide sufficient cash for operations. Several brief case studies and illustrations help the reader understand the concept and review the application of working capital metrics in a business context. Key takeaways on working capital metrics and their limitations conclude the chapter.
The original version of this chapter was revised. En dashes were used in equations. The same had been replaced by hyphens in this revised version. A correction to this chapter can be found at https://doi.org/10.1007/978-3-030-34265-4_8
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21 March 2020
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References and Further Reading
Anthony, Robert N., and James S. Reece. 1989. Accounting: Text and Cases. Irwin.
Coulon, Yannick. January 2017. Guide pratique de la finance d’entreprise. Gualino.
———. September 2018. L’essentiel des ratios financiers. Maxima Laurent du Mesnil.
Quiry, Pascal, and Yann Le Fur. 2019. Finance d’entreprise 2020 de Pierre Vernimmen. Dalloz.
Stowe, John D., Thomas R. Robinson, Jerald E. Pinto, and Dennis W. McLeavey. August 2002. Analysis of Equity Investments: Valuation. AIMR and CFA Institute.
Thibierge, Christophe. November 2013. Comprendre toute la finance, 2ème édition. Vuibert.
Walsh, Ciaran. 2008. Key Management Ratios, 4th ed. Financial Times Series. FT Prentice Hall. Pearson Education Limited.
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Coulon, Y. (2020). Efficiency Ratios. In: Rational Investing with Ratios. Palgrave Pivot, Cham. https://doi.org/10.1007/978-3-030-34265-4_2
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DOI: https://doi.org/10.1007/978-3-030-34265-4_2
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