Types of working capital, Financial Management

Assignment Help:

TYPES OF WORKING CAPITAL

Working capital can be split up into two categories on the basis of time. They are Permanent Working Capital and Temporary or Variable Working capital Permanent Working Capital relates to that minimum amount of investment in current assets which is necessary at all times to carry on minimum level of business activities. It signifies the current assets required on a continuing basis over the whole year, and hence should be financed out of long term funds.  Tandon Committee has related to this kind of Working capital as 'Core Current Assets'.

Temporary Working capital defines the additional current assets required at different times through the operating year.


Related Discussions:- Types of working capital

Illustrate the structure of financial markets, Illustrate the structure of ...

Illustrate the structure of financial markets? Structure of financial markets: Financial markets can be categorized onto the basis of several parameters as follows: the n

State the economic conditions of cost of capital, State the economic condit...

State the economic conditions of cost of capital General economic conditions These include demand for and supply of capital within the economy and level of expected inflatio

Capital management., explain the concept of working capital management?

explain the concept of working capital management?

Lockbox system, how do we compute for benefits can derrive out of using loc...

how do we compute for benefits can derrive out of using lockbox system?

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

Define the p/e valuation method, Define the P/E valuation method. Under wha...

Define the P/E valuation method. Under what circumstances should a stock be valued using this method? The P/E ratio specifies how much investors are willing to pay for each dol

Long-term solvency ratios (financial leverage ratios), Long-Term Solvency R...

Long-Term Solvency Ratios (Financial Leverage Ratios)   Debt-Equity Ratio = Total Debt / Total Equity à It is a measure of a company's debt utilization. It gives the ex

Operating cycle, discuss the applicability of an operating cycle to poultry...

discuss the applicability of an operating cycle to poultry business in uganda.

Basic concepts of principles of credit analysis, Credit analysis is the fin...

Credit analysis is the financial analysis used for determining the creditworthiness of an issuer using various quantitative and qualitative factors. The four Cs an anal

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