Turn on the news and you’ll see companies everywhere trying to shore up their balance sheets in anticipation of weak sales and reduced access to credit. Adequate working capital is crucial in these tough times to stay in business.
My predecessor, Ren Garcia, has given us a nice portrayal of a business wimp as one without enough working capital. And Randy Meyers at CFO Magazine has warned that the temptation to extend payments is a sign of working capital trouble.
Here’s how to keep an eye on yours!
Working Capital and Related Ratios
Working capital is defined as the amount …read more

Are you ready to go shopping? Retailers are ready for you to hit the shops. The day after Thanksgiving is Black Friday, which is a very good thing in the retail trade. Black Monday, however, was a very bad day. So how’d these two special money days get their names?
Black Monday = Bad
The original financial Black Monday was October 28th, 1929. Although Wall Street had begun its free fall on the prior Thursday, but it was Monday’s disastrous losses that resulted in widespread panic at the onset of the Great Depression. In 1987, history repeated itself on October 19th, up …read more