Differences in working capital for different industries, Financial Econometrics

Assignment Help:

Differences in working capital for different industries

 

Manufacturing

Retail

Service

Inventories

High volume of WIPand finished goods.

Goods for re-saleonly and usually lowvolume.

Noneor very littleinventories.

Trade

receivables

High levels of tradereceivables, as they tend be dependent on a few customers.

Very low levels as mostgoods are bought incash.

 

Usually low levels asservices are paid for immediately.

Trade

payables

Low to medium levels of trade payables.

Very high levels of trade payables due tohuge purchases of inventory.

Low levels of payables.


Related Discussions:- Differences in working capital for different industries

investors could expect to earn 8 percent, A new capital investment that wi...

A new capital investment that will cost $2.5 million and will generate perpetual net cash flows of $400,000 a year. Investors could expect to earn 8 percent elsewhere while taking

Federal Reserve Board website., #Identify at least five key pieces of data ...

#Identify at least five key pieces of data you would use in microeconomic decision making on the Web site.

The desire amount, To buy a retirement home, you will need $525,000 in 18 y...

To buy a retirement home, you will need $525,000 in 18 years. If funds can be invested at an effective return of 6 percent a year, how much must you invest today to have the desire

You earn an effective annual return of 6 percent, You decide to max-out you...

You decide to max-out your annual investment into your Individual Retirement Account and invest $6,000 at the end of each year for the next 17 years. At the end of this investment

Conservative policy for financing working capital, Q. Conservative policy f...

Q. Conservative policy for financing working capital? A conservative policy for financing working capital is one where short-term finance is usedto fund: A : All of the flu

What is over-capitalisation, Q. What is Over-capitalisation? Over-capi...

Q. What is Over-capitalisation? Over-capitalisation This is the opposite of over trading. It means a company has a large volume of inventories, cash balances and trade re

Quantitative Finance, I need help on few questions related to quantitative ...

I need help on few questions related to quantitative finance. Could you help me out in those.

Quantitative methods, a rural population (given in thousands) is thought to...

a rural population (given in thousands) is thought to decline according to the equation p=15e^(-0.1t). if t=0 at the beginning of 1998. calculate the numbers in the population at t

Concepts of adverse selection and moral hazard, Consider a recent merger be...

Consider a recent merger between two major corporations. Describe the terms of the merger (cash or stock, premium, changes in management / directors, etc.). Explain the motivation

Calculate correlation coefficient, Question The variance of Stock A is ...

Question The variance of Stock A is .004, the variance of the market is .007 and the covariance between the two is .0026. What is the correlation coefficient?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd