Hi all
Would you include the following line items in working capital calculations which are listed in the Debenhams 2018 financial report?
Derivative financial instruments
Current tax liabilities
Provisions
Replies (2)
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Depends what you really want to know. If they can be (or will be) turned into cash in the near future, then why not?
Sounds like a homework question.
It very much depends on why the reader measuring working capital.
I wouldn't include provisions or tax. Derivatives is a bit less clear cut - depends on the actual nature but for the purposes of a homework answer, I wouldn't include them. Your model answer may take a different view.