Working Capital is calculated as Current Asset – Current Liabilities.

Typically Current Assets consist of:

• Trade Debtors / Receivables
• Cash
• Inventory
• Work In Progress

Typically Current Liabilities consists of:

• Trade Creditors / Payables

Therefore by increasing one of the asset classes or reducing one of the liability classes (providing the other asset class remain a constant) you will better your Working Capital position.

If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com

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