Working capital discussion question

label Business & Finance
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How do you define working capital? What may happen if an organization neglected to manage its working capital? What techniques do you recommend for your organization? Why?

Please provide links for any information used. Should be at least 250-300 words

Sep 28th, 2015

Thank you for the opportunity to help you with your question!

working capital refers to the difference between current asses and current liabilities . the current asses needs to be more than the current liability so that the firm can be in a position to pay for its financial obligations. working capital is calculated as current asst divided by current liablity in a ration form it should be 2:1 . thus current assts should exceed current liability for a firm not be a bankrupt .

Please let me know if you need any clarification. I'm always happy to answer your questions.
Sep 28th, 2015

the managing techniques are cash budgeting , just in time,  economic order quantity and financing policy on working capital .

Sep 28th, 2015

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Sep 28th, 2015
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