Working capital, Finance Basics

Working Capital

a) Working capital or called gross working capital also, refers as current assets.

b) Net working capital refers to current assets minus current liabilities.

c) Working capital management of current liabilities and current assets refers to the administration.

  1. Target levels of each kind of current assets
  2. How current assets will be financed

d) Liquidity management includes the planned acquisition and employ of liquid resources over time to meet cash obligations like they become due. The firm's liquidity is measured with liquidity ratio like as current ratio, acid or quick test ratio, cash ratio and so on.

Posted Date: 1/31/2013 3:02:30 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
What is cash deficit?And what is cash surplus?Describe each of them in detail.

Petroleo Brasileiro (PBR) has just issued 1M one year bonds. Each bond hasa face value of1,000 Reais. Owners of the bonds are entitled to receive $R 1000 back at the end of the yea

Earnings Yield Valuation EY is given via the earnings made with the business expressed like a percentage of the market price of the business that is The Formula For Earning

Clientele Effect Theory Advance via Richardson Petit in 1977.It stated such different types of groups of shareholders or clientele have different type of preferences for divid

What are the tasks of a financial system? Three Tasks of a Financial System are as follows: 1. Decreasing transaction costs 2. Decreasing financial risk 3. Giving liqu

Stone Container is a major producer of cardboard boxes. Stone Container has $10M in outstanding equity. In addition, it has $2M in outstanding debt. The debt is a ten-yearmortgage

Fixed income security can be defined as the financial obligation of an entity (known as the issuer), which promises to pay a specified amount of money on a pre-sp

The following NPV's have been calculated to determine if a compressor installation should be accelerated from Year 3 to Year 7. The compressor cost is $1,500,000.   a. C

DEFINE THE TERM OPTION IN DETAIL?

Dividend yield or Gordon's Model This model is used to determine the cost of various capital components in particular: Cost of equity - K e Cost of preferenc