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
Current Assets:- Stock of Raw-Materials :- [(Cost of yearly consumption Of raw material)*{ (Average Inventory holding period (weeks/months))}/(52 weeks / 12 months)]=

lease finance and its types

Disclosure requirements · Common information about how operating segments were identified and types of products and services from which every operating segment derives its rev

#quA stock has a current dividend of $0.32 with a growth rate of 8% annually. Assuming a 10% annual discount rate, what should the price of the stock be one year from today? Answer

Various bond features largely affect the degree of correlation between the bond's prices and the bond's interest rates. Some of the bond feature

Australian Securities and Investment Commission: The Australian Securities and Investment Commission (ASIC) is an independent government body established by the ASIC Act 1989.

How do mergers affect small businesses? A: As per to a recent study by Federal Reserve and Wharton Financial Institutions Center economists, not a big deal. Their analysis reve

Q. Determinants of Working Capital? Determinants of Working Capital: - The working capital necessity is determined by a large number of factors but generally the following fa

Let us consider three scenarios of changes in stock prices and look into the risk return profile of the convertible security. Let us assume that the stock prices

Suppose that the business uses the double declining balance method to depreciate  its equipment (a)  Determine the net book value, depreciation expense, and accumulated deprecia