Working Capital increases or decreases with a number of factors such as inventory, etc. I don't see how changes in working capital can really affect the long term profitibility of a company however. If the company acutally made any real profits, it must be reported under income, or it is considered tax fraud.
http://www.oldschoolvalue.com/blog/valuation-methods/working-capital-free-cash-flow-fcf/
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Working Capital increases or decreases with a number of factors such as inventory, etc. I don't see how changes in working capital can really affect the long term profitibility of a company however. If the company acutally made any real profits, it must be reported under income, or it is considered tax fraud.
http://www.oldschoolvalue.com/blog/valuation-methods/working-capital-free-cash-flow-fcf/