Alcoa Enterprise Value vs Working Capital Analysis

    Enterprise Value vs Working Capital

    Enterprise Value

    Enterprise Value (or EV) is usually referred to as Alcoa theoretical takeover price. In the event of an acquisition, an acquirer would have to take on Alcoa debt, but would also pocket its cash. Enterprise Value is more accurate representation of Alcoa value then its market capitalization because it takes into account all of Alcoa Corporation existing debt. Enterprise value is a measure of the value of a business as a whole, calculated as Market Capitalization plus Total Debt USD minus Cash and Equivalents USD.

    Working Capital

    Working capital measures the difference between Current Assets and Current Liabilities.

    Accounts Relationship

    Enterprise Value vs Working Capital

    Significance: Very Week Relationship

    Overlapping area represents amount of trend that can be explained by analyzing historical patterns of Alcoa Enterprise Value account and Working Capital

    Correlation Coefficient

    0.25
    Relationship DirectionPositive 
    Relationship StrengthVery Weak