If the indicator is negative, it is generally because the average current assets are higher than the average current liabilities, indicating that the company is short of funds. Generally speaking, average current assets =2* average current liabilities is more appropriate (because of the influence of current assets such as inventory that cannot be realized immediately), and of course it depends on the industry situation.
Therefore, current liabilities *2- current current assets, which are the working capital requirements of enterprises, are relatively safe.
At the very least, we should fill the working capital gap between current liabilities and current assets. Otherwise, the enterprise may not be able to cope with the impact of short-term debt maturity, and the cash flow will be broken, which will affect production and sales and eventually lead to the closure of the enterprise. Some very powerful companies have closed down because of their rapid expansion, resulting in an irreparable cash gap.