The ratios are classified on various basics. Such grouped ratios are presented below. Here the list or classification of various financial ratios are grouped under various topics. The
What are the procedures to forecasting working capital? The following procedure is adopted for estimating working capital. Calculating the value of total current assets. Calculating the obligation of
Benefits or Advantages of Budgeting Budgeting plays an important role in the effective utilization of available resources in order to achieve over all objectives of an organization. It
Working capital forecasting is a difficult task. The reason is that the total current assets requirements should be forecasted in estimating the working capital requirements. Working capital forecasting
Factors determining working capital requirements The quantum of working capital is depending upon a large number of factors. It is very difficult to pin point the factor which
What is Inadequate working capital? Inadequate working capital means shortage of working capital to meet the day to day operating activities of the business concern. In other words,
Excess working capital refers to more amount of working capital maintained than actually required. In other words, the quantum of excess working capital is the difference between the
Adequate Working Capital Meaning Adequate working capital means an amount of working capital sufficient to meet day to day operation activities of the business concern under normal situations.
Working capital are of various types. They are explained as follows. Types of working capital 1. Permanent Working Capital It is otherwise called as Fixed Working Capital. Tandon
Working Capital Working capital refers to a part of sources of funds of a business concern used for financing short term purposes or current assets such as cash