Working capital metric for company that doesn’t take inventory

If a company sells furniture/equipment to a third party but does not take on the inventory and receives payments throughout the life of the project and recognizes as percentage of completion....what kind of nontraditional NWC metric could be used since they basically have no inventory balance. They also have deferred revenue.

Thanks in advance.

2 Comments
 

Hi scgrad, any of these threads helpful:

  • Is Negative Working Capital a Bad Thing? they may be a candidate for bankruptcy since there debtors need to be paid. That being said, working ... Q. What does negative Working Capital mean? Is that a bad sign? A. Not necessarily. It depends on ... often have negative Working Capital because customers pay upfront- so they can use the cash generated to ...
  • Change in Net Working Capital Formula day basis that is not being represented on the income statement. Net working capital (NWC) is ... the company is "gaining cash" in the sense that it has not yet paid for something that it ... expense on the IS but has not yet been paid. You subtract the change in NWC capital from free cash flow ...
  • Where is the compensation in banking? Is it worth taking a pay cut for the long-term prospects? for the average analyst here is around $150ish base and bonus of ~100-250k depending on the ... working roughly 50 hour weeks (at most). For reference, first year analyst right out of college I'm ... $500k, so I kind of feel like I need to get at least that to make up for leaving. Thanks! Banking ...
  • Didn't get paid a bonus as a PE Associate... TL;DR is that I work at a small PE shop as a first year(and now 2nd year) associate and didn't get ... a bonus this year. Don't think its personal performance or fund performance based(will get that info) ... bring the investor mindset to the table, work to source deals, take on additional projects, etc etc. ...
  • Is it true that Tobin & Company doesn't pay their analysts? I had a friend who used to worked with a few people from Tobin tell me that analysts at Tobin ... don't get paid unless they're there while a deal is closed. In that case, they'll receive ... a bonus/stipend or something like that. Does anyone know if this is true??? I' ve heard horror stories about ...
  • Paying Back Gross Sign On Bonus bonus, but I wouldn't be surprised if it says that you have to pay back the gross. After all, that ... for the taxes you paid on the bonus or a tax deduction for the total amount of the bonus repaid, ... Bonus? Several users shared that it wasn't necessary to pay back the sign on
  • Paid well but bored total comp (base + bonus), work a straight 40 hour work week with little to no travel, live in a nice ... it for me to start over at this point in my career and likely take a big pay cut to do something ... I'm 31 years old and work as a controller for a F500. I'm making roughly $150k a year in ...
  • More suggestions...

Any pros willing to rescue this discussion? @Graeme-Phillips1" miguelruisenor @rl1258"

Fingers crossed that one of those helps you.

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

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