AI.FO
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S24

Working Capital Erosion

Working Capital / base / 3 to 6 months

What it detects

The company's short-term financial cushion (current ratio) is declining over time.

Severity levels

  • MEDIUM
  • HIGH

Thresholds

Exact thresholds, formulas, and severity bands are omitted from this public view. The full methodology, with every figure, is available in the authenticated app.

How it connects

If the current ratio falls below [redacted] current liabilities exceed liquid assets. At this rate, that threshold is approached within [redacted] months.

Sources

  • Altman, E.I. ([redacted])
  • Ohlson, J.A. ([redacted])
  • Brealey, Myers, Allen
  • AI.FO's position

SEE IT ON REAL NUMBERS

The exact thresholds, the formula, and your own figures are in the authenticated app. See it against a real, simulated dataset for Integra Executive Services, our public demo company, or connect your own QuickBooks Online account.

Get accessSee the nightly proof