Working Capital — Quản Lý Vốn Lưu Động Như Thế Nào | Vnstock (English)

{"title": "Working Capital Management: How to Optimize Liquidity", "description": "Working Capital is calculated as Current Assets minus Current Liabilities. Excessive levels may indicate inefficiency, while insufficient levels may lead to liquidity issues.", "content_html": "

🔍 Formula

Working Capital = Current Assets - Current Liabilities

🎯 Optimal Level

The ideal Working Capital to Revenue ratio is around 10-20%. This ratio should remain stable or decrease over time, indicating increased efficiency.

⚠️ Rapid Working Capital Growth

A rapid increase in Working Capital exceeding revenue growth may lead to cash being tied up, resulting in negative Cash Flow from Operations (CFO). Monitor changes in Working Capital within the cash flow statement.

🚀 VNStock Insights

Automate trend analysis of Working Capital and the Working Capital to Revenue ratio.

📚 Read more in this cluster:

• Cash Conversion Cycle
• Current and Quick Ratio Analysis

🚀 Apply now: VNStock offers a free Stock Screener with 25 key indicators. Open VNStock →

Investors can apply these insights to stocks like Vietcombank (VCB), FPT (FPT), and Hoa Phat (HPG) to optimize their investment portfolios.

"}