Net Working Capital

Gross Working Capital

Working Capital Management

HAVING TOO MUCH WORKING CAPITAL HAS WHAT AFFECT ON RISK

What is the task of the financial manager in relation to working capital?

A second key task in managing working capital is managing the rate of asset turnover of the various current assets, particularly stock and debtors.

What effect does asset turnover have on investment?

What is the Cash Operating Cycle?

How is COC (Cash Operating Cycle) Calculated?

What are Permanent Current Assets?

What are the competing Demands within a company in relation to working capital?

Explain what the Short term / Long Term mix is in relation to Financing and Working Capital?

What is Hedging (or Maturity Matching) Approach

Why is Financing Needs and the Hedging Approach

What are the Long-Term Financing Benefits?

What are the Long-Term Financing Risks?

What is Risks vs. Costs Trade-Off (Conservative Approach)?

How can the risk of Short term Borrowing be reduced?

What are Short-Term Financing Benefits
?

What are Short-Term Financing Risks
?

What is Risks vs. Costs Trade-Off Aggressive Approach?

Firms increases risks associated with short-term borrowing by using a larger proportion of short-term financing.