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 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 equity

Negative equity

A situation where the purchaser of a property has taken out a mortgage and some time after the purchase, the value of the property falls below the mortgage amount. For example:Purchase price of property: 80,000Deposit: 10,000Mortgage: 70,000If the value of the property falls below 70,000, the mortgage holder has negative equity in the property.


Negative amortization

Negative amortization

A loan repayment schedule in which the outstanding principal balance of the loan increases, rather than amortizing, because the scheduled monthly payments do not cover the full amount required to amortize the loan. The unpaid interest is added to the outstanding principal, to be repaid later.


Negative pledge clause

Negative pledge clause

A bond covenant that requires the borrower to grant lenders a lien equivalent to any liens that may be granted in the future to any other currently unsecured lenders.


Negative NPV tie in project

Negative NPV tie in project

A negative-NPV infrastructure development project that a local government requires of a company engaged in a positive NPV investment project elsewhere in the country.


Further Suggestions

Negative income tax
Negative covenant
Negative externality
Negative list
Negative yield curve
N Negative Amortization
Negative duration
Negative cash flow


 
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