Sales of noncurrent assets. A business may obtain working capital by selling noncurrent assets, such as plant and equipment or long-term investments, in exchange for current assets.
Purchase of noncurrent assets. Purchases of noncurrent assets, such as plant and equipment, reduce the current assets or increase current liabilities, in either case, working capital is reduced.
In 2006, the current ratio and the quick ratio of the company rose fast.The inventory turnover ratio was high.The cashability of the current assets was strong and outperformed the industry average.