What is the meaning of over-capitalisation, Financial Management

What is the meaning of Over-capitalisation

It is the opposite of over trading. It means a company has a large volume of inventories, trade receivables and cash balances though very few trade payables. Funds tied up could be invested profitably.

 

Posted Date: 8/31/2013 6:08:45 AM | Location : United States







Related Discussions:- What is the meaning of over-capitalisation, Assignment Help, Ask Question on What is the meaning of over-capitalisation, Get Answer, Expert's Help, What is the meaning of over-capitalisation Discussions

Write discussion on What is the meaning of over-capitalisation
Your posts are moderated
Related Questions

Evaluation of change in credit policy Current average collection period = 30 + 10 = 40 days Current accounts receivable = 6m × 40/ 365 = $657534 The Average collection pe

The effective maturity of a callable bond can be anywhere between the first call date and its maturity date due to the presence of the call feat

Benefits of Going private company A public company has its shares purchased by a small group of people and ceases to be listed on stock exchange. This has many benefits includ

Explain the adjustments necessary to translate enterprise value to the total present value of common equity. To acquire the value of the company’s common stock, add the value of

SWBT Company must decide whether to repair a telephone company computer-based central office switch or purchase a new one. The existing switch originally cost $750,000 and is fully

Q. Illustrate Miller-Orr model recognises? The Miller-Orr model recognises which cash balance requirements are likely to fluctuate and that active management is required in r

Walk-through tests - Auditor • "Walk-through tests" -That is tracing one or more transactions by accounting system and observing application of internal controls. Rev

In US, savings and loan associations constitute the major originating group of the traditional loans. What types of properties can be mortgaged?

I have a presentation to give on ''New ways'' Microsoft can improve its ''Partnership Strategies''. Can some one please give some good links or insights into the same.