Archive | Working Capital

Top 3 Methods of Working Capital Estimation | Firm

The following points highlight the top three methods of working capital estimation. The methods are: 1. Percentage of Sales Method 2. Regression Analysis Method 3. Operating Cycle 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 is determined on the basis [...]

By |2016-12-12T08:06:13+00:00December 12, 2016|Estimation|Comments Off on Top 3 Methods of Working Capital Estimation | Firm

How to Calculate Working Capital? (With Formula)

The following article will guide you about how to calculate working capital. 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 employed is achieved. The term [...]

By |2016-12-12T08:06:13+00:00December 12, 2016|Working Capital|Comments Off on How to Calculate Working Capital? (With Formula)

Working Capital Management Strategies

The following points highlight the top approaches of working capital management strategies. They are:- 1. Conservative Approach 2. Aggressive Approach 3. Matching Approach 4. Zero Working Capital Approach 5. Working Capital Policies. 1. Conservative Approach: A conservative strategy suggests not to take any risk in working capital management and to carry high levels of current assets in relation to sales. [...]

By |2016-12-12T08:06:13+00:00December 12, 2016|Working Capital|Comments Off on Working Capital Management Strategies
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