Take into account the cash-flow dimension, as a visual representation of the oil in the company's engine.
Introduction to finance for project managers

While the aim of any company is to achieve zero cash flow on average, two other situations frequently arise.

• Structurally negative cash flow: in this case, working capital is insufficient to cover working capital requirements, forcing the company to resort to current bank loans. This situation is particularly common in small start-ups, where management has not anticipated the growth in working capital requirements.

• Structurally positive cash flow: working capital is too high in relation to operating cycle requirements. This situation arises in businesses where sales are made on a cash basis and suppliers are paid late, as in the retail sector.