ANALYSIS OF NET WORKING CAPITAL – A BASIC TOOL IN BUSINESS FINANCING

The paper aimed to analyse Net Working Capital, considered to be a basic tool in business financing. The data collected for the period 2005-2007 from Balance Sheet and Profit and Loss Account of an agricultural company dealing with cereal production were used to determine specific ratios .Net Working Capital Statement reached a critical point in the year 2005.The managerial decisions have improved the financial performances. In 2006 and 2007 , the company was able to face short-term debt and upcoming operational expenses, because Working Capital had a positive value and its specific ratios registered corresponding level : Current Assets exceeded Current Liabilities ; the relationship between Net Sales , Tangible Net Worth and Long –term Liabilities and Net Working Capital showed an improved financial statement.