What Is Permanent Working Capital?
What Is Permanent Working Capital?
Permanent working capital is a net asset that people often forget needs to be funded. It’s part of the reason that fast-growing companies run into cash flow issues. I’ll show two examples of how it’s created and how to reduce the cash tied up in permanent working capital.
This video comes from my Analyzing Whether to Add New Locations Course at https://cfoperspective.com/add-locations-course/