24/09/2014
Working capital management: Current nature resources or assets are called working capital.
Operating Cycle: The time period required for converting into cash is called operating cycle
Net working Capital: = Current resources – current liabilities
Return on Capital: If there are three companies! A, B, and C. They get the 100% profit by using their resources 32%, 20% and 10% respectively return on capital will be.
A = 100/32 = 3 B = 100/20 = 5 C = 100/10 = 10
Permanent working capital: Which we have need on permanent basis for example material of 1 lakh must be used in production.
Temporary W.C: Which we have need on temporary basis like seasonal nature business.
Ø Sompotonious financing means continue financing.
Ø Hajing means avoid from difficult situation.
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