Archive | Working Capital

Calculation of Working Capital Leverage | Company | Financial Management

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 [...]

By |2017-10-09T08:51:44+05:30October 9, 2017|Leverage|Comments Off on Calculation of Working Capital Leverage | Company | Financial Management

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

Working Capital: Meaning, Classification and Factors | Firms

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 [...]

By |2017-02-06T21:13:24+05:30February 6, 2017|Working Capital|Comments Off on Working Capital: Meaning, Classification and Factors | Firms
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