Changes in Working Capital

What are Changes in Working Capital?

Changes in Working Capital represent the total change in working capital due to an increase or decrease in assets, liabilities and other potential adjustments to working capital. These are included in the Cash from Operating Activities.

How are Changes in Working Capital calculated?

Changes in Working Capital are the sum of:

• Change in Accounts Receivable;
• Change in Taxes Payable;
• Change in Accounts Payable;
• Change in Accrued Expenses;
• Change in Inventories; and
• Change in Other Assets/Liabilities.