The Working Capital as a tool for evaluating assets

Abstract

This paper aims to develop a theoretical test on the practical usefulness of the concept work-ing capital, both for financial institutions as for entrepreneurs. For financial institutions, it is important to know the relationship between resources and owners of the resources of third parties, which include the banks themselves. For the entrepreneur, which should allow or not to run whose significant value is the same as a financing is important to have a clear capital of the company's spin. For the company, a clear capital of spin is useful in the analysis of the different values that make their financial statements, because facilitates the study of equilibrium and of trends in the evolution of their heritage. This test shows that the theoretical study of proportionality, as set of annual accounts that make up the assets and capital of a company requires a precise definition of such accounts, the balances to determine the actual amount working capital.