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| Working capital more nuanced than what you stated. For example, an operator with very strong cashflow who spends excess cashflows on equipment or other investments may very well still have tight working capital at the end of the year and it is no big deal. An operator who had tight cashflow to begin with and did not have any surplus to invest or spend at the end of the year is much more susceptible to a downturn. Based on a lot of lending experience, the high performers you work with are likely in the former and they probably have no trouble with their bankers. This is why I say cashflow is king. | |
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Real World/Real life Financials Course 102
