Finance project
Working capital management is a significant fact of financial management due to the fact that it plays a pivotal role in keeping wheels of business enterprise running. Working capital management is concerned with short term financial decisions have been relatively neglected in the literature of finance shortage of funds for working capital has caused many businesses to fail and in many cases, has recorded there growth. Lack of efficient and effective utilization of working capital leads to earn low rate of return on capital employed or even compels to sustain losses. The need for skilled working capital management has thus become greater in recent years.
A firm invest a part of its permanent capital in fixed assets and keeps a part of it for working capital for e.g. for meeting the day to day requirements. The requirement of working capital varies from firm to firm depending upon the nature of business, production policy, market conditions, seasonality of operations, conditions of supply etc.
Working capital management is a significant fact of financial management due to the fact that it plays a pivotal role in keeping wheels of business enterprise running. Working capital management is concerned with short term financial decisions have been relatively neglected in the literature of finance shortage of funds for working capital has caused many businesses to fail and in many cases, has recorded there growth. Lack of efficient and effective utilization of working capital leads to earn low rate of return on capital employed or even compels to sustain losses. The need for skilled working capital management has thus become greater in recent years.
A firm invest a part of its permanent capital in fixed assets and keeps a part of it for working capital for e.g. for meeting the day to day requirements. The requirement of working capital varies from firm to firm depending upon the nature of business, production policy, market conditions, seasonality of operations, conditions of supply etc.