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

Operating cycle, operating cycle of a vegetable growing business

operating cycle of a vegetable growing business

Define ‘trust''. explain in detail the various types of trust, Question 1 ...

Question 1 Define 'Trust'. Explain in detail the various types of Trust Question 2 Discuss the concept of Tax Planning. Identify difference between Tax Planning and Tax Ev

Money market mutual fund, Money Market Mutual Fund Even as the Mutual F...

Money Market Mutual Fund Even as the Mutual Funds show a promise of becoming a major instrument of household savings, another concept which is being talked about and waiting to

Company financial performance, In the telecom industry of the Australia, th...

In the telecom industry of the Australia, these are some most important organizations such Vodafone Austrelia‎, TransACT Capital Communications, Optus, and Telstra. Vodafone A

This case has been framed in order to test the skill, Ask ques1. How would ...

Ask ques1. How would you judge the potential profit of Bajaj Electronics on the first year of sales to Booth Plastics and give your views to increase the profit? 2. Suggestion rega

Revenue recognition or realisation, Revenue Recognition or Realisation ...

Revenue Recognition or Realisation The resources of business are utilized to earn revenue through sale of goods or rendering of services.The American Accounting Association d

Maturity profile, Maturity Profile Even though there is no ideal theory...

Maturity Profile Even though there is no ideal theory/concept of the maturity of the instruments, some important issues that should be considered while balancing the long-term

Reinvestment income, Other than zero coupon bonds, all fixed in...

Other than zero coupon bonds, all fixed income securities make periodic payments in the form of coupon interest. This coupon interest can be rei

Leverage, Evaluate the importance of leverage in financial management of a ...

Evaluate the importance of leverage in financial management of a small scale company

Inflated budgeted expense account, Write down what processes and data you w...

Write down what processes and data you would analyse when looking at the following scenarios and write down any improvements you could include to ensure that the problem would be l

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