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Change in Net Working Capital Is Small, but Volatile

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Change in net working capital is small, but volatile | #ChartOfTheDay

 

  • Changes in net working capital are volatile because that change results from five separate forecasts
  • Net working capital is a small but volatile investment item
  • Large deviations from past trends usually are a mistake, so explain them carefully

 

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Posted in Chart of the Day, Valuation Master Class