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
Accept or Reject Rule of NPV Under this method, a company should accept an investment venture if N.P.V. is positive that is if present value of cash outflows exceeds such of c

Suppose the Alctz Display Flowers pte  Ltd uses the periodic inventory system and  average cost to explain inventory cost. (a)  Determine the ending inventory cost as at Decembe

Debtors or Accounts Receiver Turnover Formula is as follow: Debtors/accounts receiver turnover  = Annual credit sales/Average debtor The ratio signify the number of ti

Cost of capital: The cost of capital is a term related to the field of financial investment to refer to the cost of a company's funds (both equity and debt), from an investor'

Net Present Value Method - Example Jeremy limited wishes to expand its output by purchasing a new machine worth 170,000 and installation costs are estimated at 40,000/=.  In t

Underwriting - Stock Market 1. This is the supposition of risk relating unsubscribed shares 2. When new shares are issued, they might be beneath -written or unsubscribed. A

You own a two-bond portfolio. Each has a par value of $1,000. Bond A matures in five years, has a coupon rate of 8 percent, and has an annual yield to maturity of 9.20 percent. Bon

Expectation Theory The theory states here that the yield curve depends on the expectation concerning with future inflation rates. The rate on long-term bonds will exceed, If i

Functions of Capital Markets Functions of Capital Markets are as: 1. Providing long term funds that are essential for investment decisions. 2. Provide advices to investo

Why should Roche care about the spreads on debt instruments