Year-on-year growth rate of working capital
factor.formula
Year-on-year growth rate of working capital:
Among them, the approximate calculation formula for working capital is:
The formula for calculating the year-on-year growth rate of working capital is the difference between the working capital in the most recent reporting period and the working capital in the same period of the previous year, divided by the absolute value of the working capital in the same period of the previous year. The absolute value is used as the denominator to avoid abnormal calculation results caused by negative working capital in the same period of the previous year, and to make the growth rate results easier to understand.
factor.explanation
The year-on-year growth rate of working capital reflects the changes in the working capital of an enterprise. An increase in working capital may be due to an increase in inventory and an increase in accounts receivable, which may consume the company's working capital and be detrimental to the company's short-term debt repayment ability; a decrease in working capital may be due to an increase in accounts payable and an increase in advance payments, which can increase the company's working capital and improve its debt repayment ability. This indicator can help investors evaluate the company's operating efficiency and short-term fund management capabilities. It is particularly important to pay attention to the trend changes of this indicator and conduct a comprehensive analysis in combination with other financial indicators.