Tag Archives | Working Capital

Working Capital: Meaning and Components | Business

In this article we will discuss about:- 1. Meaning of Working Capital 2. Components of Working Capital 3. Gross and Net Working Capital 4. Permanent and Temporary Working Capital 5. Positive and Negative Working Capital 6. Objectives. Meaning of Working Capital: Working capital management is a significant in financial management due to the fact that it plays a pivotal role [...]

By |2016-12-12T08:06:13+00:00December 12, 2016|Working Capital|Comments Off on Working Capital: Meaning and Components | Business

Operating Cycle and Its Functions | Working Capital

In this article we will discuss about operating cycle and its functions. Working capital is the life blood of any business, without which the fixed assets are inoperative. Working capital circulates in the business, and the current assets change from one form to the other. Cash is used for procurement of raw materials and stores items and for payment of [...]

By |2016-12-12T08:06:13+00:00December 12, 2016|Working Capital|Comments Off on Operating Cycle and Its Functions | Working Capital

Overtrading and Under Capitalization | Working Capital

In this article we will discuss about the impact of overtrading, under capitalization on working capital. Impact of Overtrading on Working Capital: Overtrading arises when a business expands beyond the level of funds available. Overtrade means an attempt to finance a certain volume of production and sales with inadequate working capital. If the company does not have enough funds of [...]

By |2016-12-12T08:06:13+00:00December 12, 2016|Working Capital|Comments Off on Overtrading and Under Capitalization | Working Capital
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