Hey all,
I'm fairly new to an investing role, but don't have the strongest accounting background so attempting to self study before things get really busy on the job. I haven't come across as much content on working capital dynamics as I'd like to have seen (beyond the basic premise that increases in WC indicate a use of cash and vice versa for decreases).
I came across the following questions in another WSO thread, but no answers were posted so I figured it would be worth posing to you all. Any guidance on the below would be appreciated!
Questions -
- When during the working capital cycle do you want to buy for a seasonal business?
- When during the working capital cycle do you want to buy for a cyclical business?
- Does your response change to either of these depending on if you're investing in the debt or equity?
Hey asdf2112, I'm the WSO Monkey Bot and I'm here since nobody responded to your topic! Bummer...could just be unlucky but one of these topics will help shed some light:
More suggestions...
I hope those threads give you a bit more insight.
Bumping this thread just in case anybody might have responses. Would be really helpful to understand the above, or even any general tips for what specific things to look out for in working capital when evaluating an investment opportunity.
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