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
Mr. X invests Rs. 10000 at 10% p.a compounded semi-annually. Compute value after three years.

Do you provide assignment help on the topic Use of Derivatives in Equity Portfolio Management?

what type of financing is appropriate to each fim

Suppose that Harry and Steven make their living selling contraband at opposite ends of a town that is 1 mile long. Because it's a crowded city, the citizens use taxi-cabs for trans

Q. What is Estate Tax? Estate Tax - Tax on the value of a DECENDENT'S taxable estate, usually defined as the decedent's ASSETS less LIABILITIES and certain expenses that may in

Advantages of Private Mutual Funds It is felt that the entry of private Mutual Funds would encourage competitiveness in the financial sector and promote the existing investment

Benjamin Tang currently has holdings in the following three companies:                                                                             E(R)                      σ

Method to Identify the Component of Seasonal Variation in a Time Series This technique is called as Ratio to Moving Average Method. In this technique, we construct an index wh

lease finance and its types

Organizational Cost Drivers It is the cost consequences that result from managerial choices concerning the company of activities as well as the involvement of persons inside an