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
1.  Suppose you would like to buy a house and you decided you can pay 3500 per month for 30 years.  Your bank has approved you for a 30-year fixed rate mortgage loan at a quoted AP

Important points for Working Capital Cycle A lengthy working capital cycle is a sign of poor management of debtors and stock reflecting low turnover of debtors and stock and l

Access the relevant authoritative literature on accounting for the transfer of financial assets. What conditions must be met for a transfer of receivables to be accounted for as a

The Beta of several industry sectors is shown below. Industry                                                                                            Beta (β) Banks

Explain the method of Offer of Sale Method of offer of sale consists in outright sale of securities through intermediary of issue houses or share brokers. In other words, sh

Define and explain the credit multplier

Question 1: i) Discuss  the main risks facing a retail bank in its traditional business of deposit taking and lending? ii) How can a bank manage the risks related to credit

Important Factors for Expectation Theory The following circumstances are essential for the expectation theory to hold. i) Ideal capital markets exists where there are many

An industrial engineer proposed the purchase of a RFID Fixed Asset Tracking System for the company's warehouse and weave rooms.  The engineer though that the system would provide a

Yard Stick Required in Ratio Analysis 1. Past performance of the company The company's previous performance past ratio is needed to gauge or measure the company's present