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Why is too much working capital not always a go... - SS2 Accounting Interpretation of Accounts Using Simple Accounting Ratios Equity: Working Capital Question

Why is too much working capital not always a good thing for a business?

Too much working capital can tie up resources that could be used for growth and investment. It may also indicate that the business is not using its resources efficiently, which could lead to missed opportunities for growth and profitability.

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