Archive | Estimation

Working Capital Estimation of a Firm: 4 Methods | Financial Management

There are four methods for estimating the working capital requirements of a firm. The methods are: 1. Percentage of Sales Method 2. Regression Analysis Method 3. Operating Cycle Method 4. Individual Components Method. 1. Percentage of Sales Method: It is a traditional and simple method of determining the level of working capital and its components. In this method, working capital [...]

By |2017-10-09T08:51:44+05:30October 9, 2017|Estimation|Comments Off on Working Capital Estimation of a Firm: 4 Methods | Financial Management

Estimating the Working Capital Need of a Company | Financial Management

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. [...]

By |2017-10-09T08:51:44+05:30October 9, 2017|Estimation|Comments Off on Estimating the Working Capital Need of a Company | Financial Management
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