Working Capital

Types of working capital

𝐓𝐲𝐩𝐞𝐬 𝐨𝐟 𝐖𝐨𝐫𝐤𝐢𝐧𝐠 𝐂𝐚𝐩𝐢𝐭𝐚𝐥- 𝐆𝐫𝐨𝐬𝐬 𝐯𝐬 𝐍𝐞𝐭 𝐖𝐂, 𝐏𝐞𝐫𝐦𝐚𝐧𝐞𝐧𝐭 𝐯𝐬 𝐓𝐞𝐦𝐩𝐨𝐫𝐚𝐫𝐲 𝐖𝐂.

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Looking puzzled! Why there are too many different types of working capital? why they are categorized so broadly? & most importantly why is working capital so important for any business or company? Working capital is the lifeblood of any business because a business can survive even in losses (without having any profit) but maintaining liquidity …

𝐓𝐲𝐩𝐞𝐬 𝐨𝐟 𝐖𝐨𝐫𝐤𝐢𝐧𝐠 𝐂𝐚𝐩𝐢𝐭𝐚𝐥- 𝐆𝐫𝐨𝐬𝐬 𝐯𝐬 𝐍𝐞𝐭 𝐖𝐂, 𝐏𝐞𝐫𝐦𝐚𝐧𝐞𝐧𝐭 𝐯𝐬 𝐓𝐞𝐦𝐩𝐨𝐫𝐚𝐫𝐲 𝐖𝐂. Read More »

Negative working capital

𝐍𝐞𝐠𝐚𝐭𝐢𝐯𝐞 𝐖𝐨𝐫𝐤𝐢𝐧𝐠 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐨𝐫 𝐏𝐨𝐬𝐢𝐭𝐢𝐯𝐞 𝐖𝐨𝐫𝐤𝐢𝐧𝐠 𝐂𝐚𝐩𝐢𝐭𝐚𝐥: 𝐖𝐡𝐢𝐜𝐡 𝐢𝐬 𝐁𝐞𝐭𝐭𝐞𝐫?

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While calculating working capital (WC), have you ever found a negative working capital? Or confused between positive working capital or negative working capital: Which is better? If yes, then this is for you. In this post, I have explained with the help of the Wall-Mart case study- all the different positions of working capital: positive, …

𝐍𝐞𝐠𝐚𝐭𝐢𝐯𝐞 𝐖𝐨𝐫𝐤𝐢𝐧𝐠 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐨𝐫 𝐏𝐨𝐬𝐢𝐭𝐢𝐯𝐞 𝐖𝐨𝐫𝐤𝐢𝐧𝐠 𝐂𝐚𝐩𝐢𝐭𝐚𝐥: 𝐖𝐡𝐢𝐜𝐡 𝐢𝐬 𝐁𝐞𝐭𝐭𝐞𝐫? Read More »