Working capital is an important analysis tool that can help determine the ability of a corporation to pay its liabilities and have assets left over for capital expenditures and growth spending. When a company has high working capital, there is no real worry about it missing its debt payments or other liability obligations. Conversely, low working capital can be a warning signal to investors that a corporation could be facing some difficulties with its obligations over the next year. Working capital is found by taking current assets and subtracting current liabilities. Working capital can also be determined by using the current ratio, which is a measure of a company’s ability to pay liabilities over the next year. The following are three stocks with low working capital and underlying fundamentals.

Approach Resources Inc.

Approach Resources Inc. (NASDAQ: AREX) operates as an independent oil and gas company that engages in exploring, developing, producing and acquiring oil and gas deposits around the United States. As of the end of 2014, Approach Resources had 146.2 million barrels of oil located in its properties in Crockett and Schleicher counties in Texas. As of February 2016, the oil and gas company was not profitable and is not expected to reach profitability within the next year. Approach Resources has a price-to-sales (P/S) ratio of 0.22 and a price-to-book (P/B) ratio of 0.06. Overall, shares of Approach Resources have returned -52.17% year to date.

In full-year 2012, Approach Resources had working capital of -$44.59 million. Full-year 2013 working capital results ended up at $5.97 million. However, negative working capital returned in full-year 2014 with results of -$45.77 million. As of February 2016, Approach Resources has a current ratio of 0.70. As of September 2015, the company had cash and equivalents of around $320,000 and total debt of $515.59 million.

Noodles & Company

Noodles & Company (NASDAQ: NDLS) is a fast-casual restaurant that offers pasta and noodle-based dishes, as well as sandwiches, soups, salads and more. As of February 2016, Noodles & Company was not profitable but is forecast to reach profitability within the next year, as seen with a forward price-to-earnings (P/E) ratio of 81.93. Furthermore, the restaurant has a P/S of 0.74, P/B of 3.44 and price-to-cash flow (P/CF) ratio of 164. As of February 2016, Noodles & Company has returned 22.60% year to date.

Full-year 2012 brought working capital of -$7.68 million. During full-year 2013, working capital came in at -$5.83 million, and in full-year 2014, working capital finished with a return of -$3.05 million. Noodles & Company has a current ratio of 0.70 as of February 2016. As of September 2015, Noodles & Company had $2.02 million in cash and equivalents, and total debt of $60.4 million.

Unit Corporation

Unit Corporation (NYSE: UNT) engages in drilling, exploring, developing and acquiring oil and natural gas deposits across the United States. As of the end of 2014, Unit Corporation had 75 rigs in operation, three natural gas treatment plants, 14 processing plants and 38 gathering technologies. In addition, the company operated 1,525 miles of pipeline that sprawled across Oklahoma, Kansas, Texas, Pennsylvania and more. As of February 2016, Unit Corporation was not profitable and is not forecast to reach profitability within the next year. It also has a P/S of 0.33, P/B of 0.21 and P/CF of 383. As of February 2016, shares of Unit Corporation have returned -43.85% year to date.

During full-year 2012, the oil and gas company had working capital of -$11.5 million. In full-year 2013, working capital finished at -$31.54 million, and as of full-year 2014, working capital stood at -$51.68 million. Unit Corporation has a current ratio of 0.80 as of February 2016. As of September 2015, the company had cash and equivalents of $890,000 and total debt of $931.57 million.

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