Change in working capital
How much cash the business tied up in inventory and receivables, or conversely released by stretching supplier terms.
How to read the number
A growing company almost always puts cash into working capital: growth is paid for before it brings revenue in.
When the metric lies
A one-off release — delaying payments to suppliers, say — looks handsome in a quarterly cash flow and reverses in the next one.
Also known as: working capital movement