Dollar amounts of working capital are difficult to assess when comparing companies of different sizes or in comparing such amounts with industry figures.

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Dollar amounts of working capital can be misleading when comparing companies of different sizes because larger companies generally require more working capital to operate. Additionally, industry figures may not reflect the specific needs and strategies of individual companies within the industry. It is often more useful to analyze working capital ratios (such as current ratio or quick ratio) which provide a standardized measure of a company's liquidity position.

Dollar Amounts of Working Capital Are Difficult to Assess When