I am a novice in stock market and while doing research , I got stuck in 2 basic questions(Here I am attaching a pic for better reference) –
- The formula for working capital changes is receivables + inventory – Payables + Other WC items
(we are looking at march 2021 results)
What is the meaning of + and – symbols in screener, as if we apply the above formula given by using the values mentioned in screener::::: Inventory(-849) + Receivables(-409) – Payables(1143) + other WC items(-92) then it doesnt equal to working capital changes(-206) as (-849) + (-409) – (1143) + (-92) = -2493 and not -206
Please help where am I getting it wrong .
- Payables is the money that is owed by the company. If we look at march 2023 results than payables are in -ve . Does it means that company has payed for raw materials or other such items in advance ?
Your answer to these questions will be very helpful .
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