The money tied up in day-to-day operations: in inventory and in invoices customers have not yet paid — minus what the company itself owes its suppliers.
MoatLens tip: The less money stuck here, the better. Some strong companies even run on negative working capital: customers pay in advance, suppliers are paid later — the company operates on other people's money. The warning sign runs the other way: when inventory and unpaid customer invoices grow markedly faster than revenue, the company may be selling to customers who cannot pay, or is left sitting on goods.
In MoatLens this explanation sits right next to the number — one tap away. And you see the ten-year trend instead of a single value.
