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cover of episode Episode 174: How to Explain Changes in Operating Working Capital

Episode 174: How to Explain Changes in Operating Working Capital

2022/5/16
logo of podcast Investment Banking Recruiting Secrets of the Top 1%

Investment Banking Recruiting Secrets of the Top 1%

Shownotes Transcript

Changes in operating working capital is one of the most important variables when calculating the free cash flow of a business.

However, it’s a relatively difficult concept to grasp and explain, especially for someone who has never run an actual business before.

They key to explaining this is understanding when an event is a USE of cash versus a SOURCE of cash.

Hear me coach my student on how to explain this concept in a clear and concise way.

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