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

Operating cycle, what is the applicability of an operating cycle in vegetab...

what is the applicability of an operating cycle in vegetable growing?

Balance of payment, what economic factors affect current account balances

what economic factors affect current account balances

APPLIED FINANCIAL ECONOMETRICS, Question 1 Suppose that you have 150 obser...

Question 1 Suppose that you have 150 observations on production (yt) and investment (it), and you have estimated the following ADL(3,2) model: (1 – 0.5L – 0.1L2 – 0.05L3)yt = 0.7

Distinguish between debt finance and equity finance, Question 1: (a) A...

Question 1: (a) As a small island economy , Mauritius had to face a number of constraints in order to transform itself from mono-cop economy into a well diversified midd

Working capital cycle in a manufacturing business, Working capital cycle in...

Working capital cycle in a manufacturing business Average time raw materials are in stock   +   Time taken to produce goods   +   Time tak

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.

Intercorporate investments, Intercorporate investments: DI has a 25% ...

Intercorporate investments: DI has a 25% interest in a gold mine in the Yukon. They have held this investment for eighteen months. During this time it has not made any mon

Investors short sell, Pythagoras Jones has just inherited $1,000,000 and wi...

Pythagoras Jones has just inherited $1,000,000 and wishes to invest this sum in the ?ve funds given below. Fund     Name                                Code               Return

Analyse the finance costs, The Citilink Bus Company ("Citilink") was establ...

The Citilink Bus Company ("Citilink") was established in 2000 to operate a bus service across a city with 1 million inhabitants. The bus company was created by an indigenous busin

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