Computation of working capital, Financial Management

Assignment Help:

Will you please define the working capital and Calculation of working capital?

I need urgent help in my assignment. help me!

Related Discussions:- Computation of working capital

Illustrate the method of appraising capital investments, Q. Illustrate the ...

Q. Illustrate the method of appraising capital investments? One of the potency of internal rate of return (IRR) as a method of appraising capital investments is that it is a di

Difference between debtcapital and equity capital, Difference between Deb...

Difference between Debtcapital and Equity capital Debtcapital comprises: Long-term loans (debentures, loan stock etc.) Preference share capital May also in

What is a marginal cost of capital schedule (mcc), What is a marginal cost ...

What is a marginal cost of capital schedule (MCC)? Is the schedule always a horizontal line? Explain. The marginal cost of capital schedule is a graphic representation of the

Financial planning assignment, School of Business BUACC1521 Personal Financ...

School of Business BUACC1521 Personal Financial Planning ASSIGNMENT 1. General information As detailed in the Course Description, the assignment constitutes 30% of the tota

Define the meaning of overtrading, Define the meaning of Overtrading Wh...

Define the meaning of Overtrading When a company is trading at a very fast pace, it would be generating sales on credit with speed, so have a large volume of t

Define decision to not permit price to ration goods, What reasons do govern...

What reasons do governments frequently give to justify the decision to not permit price to ration goods? (a) Price gouging is bad. (b) Income is unfairly distributed. (c) Some

Pledged-account mortgages (pams), PAMs are so structured that the rep...

PAMs are so structured that the repayments resemble traditional mortgages from the lenders' point of view and resemble GPMs from the borrowers' point of view. Thi

Financial Modelling of a company, I want help regarding my FM assignment.

I want help regarding my FM assignment.

Federal reserve system forecast, A. Joe wants to invest in Nebraska Municip...

A. Joe wants to invest in Nebraska Municipal 6% GOB that are rated AA. Joe's tax rate is usually between 28% . GE plans to sell AA rated 8% coupon bonds. Compute Joe's after-tax i

Explain payback period of CHROMEX PLC, CHROMEX PLC Payback period ...

CHROMEX PLC Payback period Payback period must be based on cash flows that is the cash generated from operations and the capital invested by Chromex. Profit is different f

Patricia 2/14/2013 12:25:19 AM Computation of Working Capital: A measure of both a company''s effectiveness and its short-term financial health. The working capital ratio is evaluated as: This ratio shows whether a company has enough short term assets to cover its short term debt. Anything below 1 shows negative W/C (working capital). While anything over 2 seems that the company is not investing excess assets. Most consider that a ratio between 1.2 and 2.0 is sufficient. Also described as "net working capital", or the "working capital ratio".

Patricia

2/14/2013 12:25:19 AM

Computation of Working Capital:

A measure of both a company''s effectiveness and its short-term financial health. The working capital ratio is evaluated as:

This ratio shows whether a company has enough short term assets to cover its short term debt. Anything below 1 shows negative W/C (working capital). While anything over 2 seems that the company is not investing excess assets. Most consider that a ratio between 1.2 and 2.0 is sufficient.

Also described as "net working capital", or the "working capital ratio".

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages