AQUILA RESOURCES INC ORD AQARF

RE:RE:RE:RE:year end comments

[luke1234]

Hi, Invidious1

I am not quite sure what you mean, but the calculation is as follows:

Current Assets - Current liabilities less warrants payable = net working capital
1.933.396         -              (2.696.641 - 5.399)                   = -757.846

From the perspective of liquidity, the higher the (net) working capital, the less potential liquidity trouble a company can find itself in. Namely, if current liabilities have to be repaid and the company is unable to refinance them, current assets are usually the more liquid part of assets and  can be turned into cash relatively quickly and used to repay liabilities. So, the higher the Current Assets / Current Liabilities ratio is, the better the liquidity position of a company is. Does that answer your quiestion?

Regards, Luka