I did not receive any formal finance or accountancy training. The only course I took was a Accountancy 101 module during my university days. The only advantage I have over those with zero knowledge is understanding what terms like “account receivables” and “cost of goods sold” are. This can be learnt using Google. So that means that you do not have to be an accountant to do the same research that I’m doing. In this post, I will be going through the concept of “Working Capital”.

If you just look up “working capital” online, you will probably not be able to understand what it means or how to interpret it in terms of valuation. This is because the definition is from an accounting perspective.