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Does working capital include all current assets?

Not sure if it includes derivatives etc?

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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

Replies (2)

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By WhichTyler
19th Aug 2019 22:24

Depends what you really want to know. If they can be (or will be) turned into cash in the near future, then why not?

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By paul.benny
20th Aug 2019 08:44

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.

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