Working capital in a business is needed because of the operating cycle. But the need for working capital does not come to an end after the cycle is completed. Since the operating cycle is a continuous process, there remains a need for continuous supply of working capital. However, the amount of working capital required is not constant throughout the year, [...]
Everything you need to know about the sources of working capital. Working Capital is defined as the "excess of current assets over current liabilities and provisions." According to Shubin “working capital is the amount of funds necessary for the cost of operating the enterprise. Working capital in a going concern is a revolving fund. It consists of cash receipts from [...]
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. [...]