it a good or bad idea? I've been doing some research and Net Working Capital is calculated by Taking your Current Assets and subtracting the Current Debt/Liabilities. To me it would make more sense to have a Higher NWC rather than a lower one. Initially it was made to lower inventory and increase cash flow somehow to pay Salaries... But now every Sales unit, warehouse and Plant needs to keep inventory down and therefore NWC down. This doesn't make sense since customers can buy what they need from stock since the stock levels are so low.
Your thoughts please
Your thoughts please