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

Discuss the idea of efficient market hypothesis as it appear, how to do suc...

how to do such an assignment?

Sovereign debt , Sovereign debt is a debt instrument guaranteed by th...

Sovereign debt is a debt instrument guaranteed by the government. The other names for sovereign debts are sovereign bonds or government bonds. They are issued in

Explain difference among economic profit & producer surplus, What is the di...

What is the difference between economic profit and producer surplus? When economic profit is the difference among total revenue and total cost, producer surplus is the variatio

State a process for benchmarking, State a process for benchmarking 1. ...

State a process for benchmarking 1. Gain senior management commitment to establish benchmarking as a process within the organisation and educate stakeholders and staff about t

Accounts, XYZ Ltd is a group of doctors, dentists, professional sports play...

XYZ Ltd is a group of doctors, dentists, professional sports players and celebrities with excess funds who wish to find small companies with great innovative ideas and invest in th

Non-traditional mortgages, Non-traditional mortgages also referred to...

Non-traditional mortgages also referred to as Alternative Mortgage Instruments (AMIs), do not have level monthly payments, but employ some other structure of payment.

Explain the mechanism that restores the balance of payments, Explain the me...

Explain the mechanism which restores the balance of payments equilibrium when it is disturbed under the gold standard. Answer: The adjustment mechanism within the gold standar

Conversion price, It is the exercise price at which the investor or...

It is the exercise price at which the investor or the bondholder exchanges the bond for shares.

Liquidity mix, I am facing some problems in my assignment of Liquidity Mix....

I am facing some problems in my assignment of Liquidity Mix. Can anybody suggest me the proper explanation for it?

Explain the purpose of corporate appraisal, PRC Company, a retailer of baby...

PRC Company, a retailer of baby clothes and toys, has been in existence for 20 years. Its approach to strategy has tended to be informal and emergent rather than planned. However,

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