What is Negative Working Capital Mean?

egative capital is very common in some industries such as Hotels and Grocery retail businesses. In grocery shops customers pay upfront, inventory moves relatively quickly but suppliers give days (o more) credit. This means that the company receives cash from customers before it needs cash to pay suppliers. Negative working capital Is efficiency in business with low inventory and accounts receivable? In other trades, undesirable working capital is an indicator a company is facing financial trouble.