Dear All, How to compute the working capital requirement of a medium sized company. Regards Ram
From India , Delhi
Working capital is defined as difference between current assets and current liabilities. It is that of company`s capital which is used to meet day to day operational expenses.

Current Assets= Bills Recievables+ Debtors+ Cash + Marketable Securities+ Inventory+ Prepaid expenses

Current Liabilities= Creditors + Outstanding expenses+ Bills Payable+ Provision for taxes

A strong current ratio ( current assets/ current liabilities) implies strong working capital management. Other indicators to gauge working capital effectiveness are as under--

1) Working capital to sales ratio
2) Inventory turnover ratio
3) Debtors turnover ratio
4) Creditors turnover ratio

Working capital financing can be done through following ways-

- Cash Credit Facility
- Short term bank loans
- Trade credit
- Factoring
- Letter of Credit
- Issue of Commercial Paper ( Rated by CRISIL/ ICRA)

Hope the above helps...!! Pls revert in case of clarifications.

Warm Regards,
Sameer Sakharkar
Visiting Faculty-Finance
KC College, Davars` College- Mumbai.

From India , Mumbai
Dear Sir,
We are SSI registered company in India mainly working for defence of India we need to submit a project for Bill financing or Shortterm loan project to our bankers can u please help me and send me at my mail address :- or

From India , Delhi
Can anyone help me in finding project report on working capital management in construction industry
Plz help me
If u find that project report then send to me at my email id

From India , Mumbai
Please Login To Add Reply

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2021 Cite.Co™