Working capital?
April 5, 2009 by Accounts Receivable Factoring
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To what extent is working capital a measure of the financial performance of a company?
Cash Flow Funding
Got this question in an assignment
To what extent is working capital a measure of the financial performance of a company?
Cash Flow Funding
Factoring Feedback: Working Capital is the main resource of a trading or manufacturing business. Actually working capital is the sole earner part in a business financially. Other parts of earning such as interest on security, statutory deposits,investment etc. form a very low percentage in the total earning of a business. Huge working capital means larger inventory, more percentage of capacity utilization, and better cost management towards lowering sale-price and thereby attract more numbers of satisfied customers.Working capital in sufficiency, put into multiple numbers of cycles in a financial year betters turnovers and thereby increase in working profit; translated into more real profit for a business concern. It is the working capital which contributes in a company’s books to augment capital each year and betterment of balance sheet.