Topic > What are the financial ratios that affect the health of a company?
Negative working capital and current ratio below 1.0 show that the company needs to work on its liquidity ratios. Normally, having a negative aspect is bad for a company's operations. However, in some cases it is acceptable to have negative working capital. Companies that operate with negative working capital tend to be more adaptable when it comes to raising cash than companies with positive working capital. Since Exxon Mobil Corporation is the fifth largest company by revenue, it is clear that they have no problem making money. Perhaps this is why they operate this way
tags