WCR is most often
positive.
Example :
Click
here to see the source of data
| Starwworld Group |
End of year |
| |
2021 |
2022 |
2023 |
| Short
term funds used to finance
short term assets |
| Accounts
Payable |
116 |
139 |
181 |
| Accruals |
36 |
45 |
55 |
| Total
of short term funds |
152 |
184 |
236 |
| Short
term assets to be financed
by short term funds
|
| Accounts
Receivable |
232 |
278 |
362 |
| Inventory |
97 |
116 |
151 |
| Prepaid
expenses |
35 |
20 |
55 |
| Total
of short term assets |
364 |
414 |
568 |
| Requirement
of funds |
-
212 |
-
230 |
- 332 |
| Variation |
|
-
18 |
-
102 |
|
The variation
of Requirement of funds
| |
2022 |
2023 |
| |
Sources |
Uses |
Sources |
Uses |
| Accounts Payable |
23 |
- |
42 |
- |
| Accruals |
9 |
- |
10 |
- |
| Accounts Receivable |
- |
46 |
- |
84 |
| Inventory |
- |
19 |
- |
35 |
| Prepaid expenses |
15 |
- |
- |
35 |
| Total |
47 |
65 |
52 |
154 |
| Net Requirement of
funds |
- |
18 |
- |
102 |
|
Sources :
Understanding
Financial Statements, 1999,
Marc Bertonèche, Ph. D. in Finance
from the Northwestern University, Professor
at the Bordeaux University and at Sciences-PO
Paris, Visiting Professor at Harvard Business
School and Oxford University.
(c) Corporate
Finance Course, Bernard Jaquier, Professor
in Economics & Finance, Lausanne, Switzerland, 2024
