Crédito y empresas

Working capital traditionally has been considered as a positive component of the balance sheet. That is, good performance for the current ratio has been considered as a result well in excess of 1:1, with the higher the numerator, the better; similar results hold for the other working capital ratios. For example, $3 million of current assets compared to $1 million of current liabilities is a current ratio of 3:1, or a three times "cover". This thinking has been driven by the attitude of lenders and financial analysts that working capital constitutes a store of value for repaying such debts as borrowings. Bankers are trained to look at financial ratios and demand numbers that exceed preset standards. Often this demand is to enable the bank to forcé a company to borrow to put more cash on the balance sheet, thereby growing the bank´s loan portfolio. The newer view is that working capital in undesirable because it constitutes a drag on financial performance. Current asset...