In this article we will discuss about the estimation of working capital need of a company in special situations. Seasonal Industries: In the seasonal industries, the level of working capital requirement will not be similar all through the year. In times of off-season, the working capital requirement and the levels of investment in current assets and liabilities are very low. [...]
Learn how to calculate the working capital leverage of a company with the help of suitable examples. One of the important objectives of working capital management is by maintaining the optimum levels of investment in current assets and by reducing the levels of current liabilities, the company can minimize the investments in working capital thereby improvement in return on capital [...]
After reading this article you will learn about:- 1. Meaning and Concept of Working Capital 2. Classification of Working Capital 3. Factors 4. Sources 5. Uses. Meaning and Concept of Working Capital: Working Capital refers to a firm's investment in short term assets-cash, short term securities, accounts receivable and inventories. Net Working Capital is defined as current assets minus current [...]