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 FORM 31 103F1 CALCULATION of EXCESS WORKING CAPITAL 2011

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hi everyone in this video i am going to introduce you to um a financial statement analysis called working capital now working capital if you are familiar already with what's known as the current ratio is going to look very similar because working capital uses the same accounts as the current ratio it uses current assets and current liabilities only as opposed to the current ratio which divides these two numbers working capital actually subtracts them so you see the formula over here current assets minus current liabilities and that's going to give us our working capital and the name working capital is essentially a way of saying hey after you've paid off the debts you expect to come due in the next year how much value do you have left to essentially work with to help do something different with the business and so here we have the balance sheets of uh weiss markets and kroger both in the um grocer industry um and we're going to pull the current assets and current liabilities from both

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