Negative working capital


 

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Negative working capital

Occurs when current liabilities exceed current assets, which can lead to bankruptcy.



Negative working capital

Similar Matches

Negative yield curve

Negative yield curve

When the yield on a short-term security is higher than the yield on a long-term security, partially because high interest rates are creating a greater demand for short-term borrowing.


Negative convexity

Negative convexity

A bond characteristic such that the price appreciation will be less than the price depreciation for a large change in yield of a given number of basis points. For example, a fixed-rate mortgage may lose value as rates go down because of prepayments.


Negative cash flow

Negative cash flow

Occurs when spending in a business is greater than earnings.


Negative externality

Negative externality

A harmful externality; that is, a harmful effect of one economic agent's actions on another. Considered a distortion because the first agent has inadequate incentive to curtail their action. Examples are pollution from factories (a production externality) and smoke from cigarettes (a consumption externality).


N Negative Amortization

N Negative Amortization

A condition created when a loan payment is less than interest alone. Even though payments are made on time, the amount owing increases.


Further Suggestions

Negative pledge clause
Negative income tax
Negative duration
negative equity
Negative list
Negative NPV tie in project
Negative covenant
Negative amortization


 
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