abm
26th March 2010, 15:41
How is it calculated on a public company's statement?
I know its :
(year 1 current assets- year 1 current liabilities)
-
(year 2 current assets- year 2 current liabilities)
However the number is always different.
Lets take Visa for example:
(using google finance)
For the fiscal year ending Sept 2008, it had 11,174m in current assets and 7165m in current liabilities. For the year ending Sept 2009, it had 9241m in current assets and 4442m in current liabilities.
Therefore:
(11,174m - 7165m)
-
(9241m-4442m)
= -790m change in working capital
However, when u look at the cash flow statement for the year ending sept 2009, it says the change in working capital is -3262m.
I know its :
(year 1 current assets- year 1 current liabilities)
-
(year 2 current assets- year 2 current liabilities)
However the number is always different.
Lets take Visa for example:
(using google finance)
For the fiscal year ending Sept 2008, it had 11,174m in current assets and 7165m in current liabilities. For the year ending Sept 2009, it had 9241m in current assets and 4442m in current liabilities.
Therefore:
(11,174m - 7165m)
-
(9241m-4442m)
= -790m change in working capital
However, when u look at the cash flow statement for the year ending sept 2009, it says the change in working capital is -3262m.