Working Capital Management Strategies And Technique 9788120317307

Author : Bhavesh P. Chadamiya
Publisher :
ISBN 13 : 9788177083439
Total Pages : 0 pages
Book Rating : 4.0/5 (834 download)

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Download or read book Working Capital Management written by Bhavesh P. Chadamiya and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial needs of a modern enterprise may be classified into two categories: fixed capital and working capital. Fixed capital includes land and buildings, plant and machinery, and tools and implements. The requirement of finance to purchase fixed capital is essentially long-term in nature. Working capital, short-term in nature, is required to purchase raw materials and meet day-to-day administrative and other such expenses. The efficient handling of working capital plays a crucial role in the successful functioning of a business enterprise. Working capital facilitates the utilization of capacities created by fixed capital. Sound working capital management, by optimizing the use of funds, enhances profitability. It improves liquidity by focusing attention on flow of funds through proper management of cash, receivables, inventories, and short-term sources of funds. While efficient working capital management can do much to ensure the success of a business, its inefficient management can lead not only to loss of profits, but also to ultimate downfall of what otherwise might be considered as a promising concern. This book provides a comprehensive account of different aspects of working capital management, including, inter alia, size and adequacy of working capital, structure and efficient utilization of working capital, as well as financing pattern of working capital and factors influencing investment in working capital.