Working capital, Financial Management

Working Capital

Working capital is measured as the difference among organization present assets and its current liabilities. Therefore, it is interpreted by some as a measure of a firm's liquidity or its ability to pay its bills on a short-term basis. However, excess investment in working capital can be costly for a firm as the rate of return on an organization working capital is likely to be lower than alternative long-term investment project returns. Therefore, the maintenance of excessively high working capital builds too much liquidity and hence lowers overall returns.

Posted Date: 10/16/2012 6:33:26 AM | Location : United States







Related Discussions:- Working capital, Assignment Help, Ask Question on Working capital, Get Answer, Expert's Help, Working capital Discussions

Write discussion on Working capital
Your posts are moderated
Related Questions
I need a report on the topic Investment of Surplus Cash. Can you please assist me for Investment of Surplus Cash report for about 2000 words?

Sensitivity Analysis A test of an organizations performance projections based on varying the key assumptions which is used for forecast performance.

Multi-period Compounding or else Future Value :- If the company determination compounding interest half-yearly (semi-annually) instead of annually then investors will gain as he wi

Clearing and Settlement The Treasury Bills are available in physical form if an investor desires so. The market is mostly dominated by institutional players who have a facility

Q. Explain about Discount Rate? Discount Rate - Rate at which INTEREST is deducted in advance of the issuance, selling, purchasing or lending of a financial instrument. Also, t

Q. Example to show the companys current gearing? The company's current gearing 2000/ 8500 × 100 = 23.53% The current gearing position is on the low side particularly wh

explain participating budgeting and slow budgeting.

how do we get the pvif of a perpetuity

I have a assignment of financial accounting Its a report on company Assignment length 2000 words

Work out and submit the comprehensive problem below. Halstrom Corporation purchased a piece of equipment three years ago for $230,000. It has an asset depreciation