Differences in working capital for different industries, Financial Management

Assignment Help:

Differences in working capital for different industries


 

Manufacturing

Retail

Service

Inventories

High volume.

WIP and finished goods

Goods  for  re-sale  only,

usually low volume

No  or  very  little

inventories

Trade

Receivables

High  levels  of  debtors,  as dependant  on  a  few customers

Very  low  levels  as  most

goods bought by cash

Usually  low  levels as services are paid for immediately

Trade

Payables

Low  to  medium  levels  of Payables

Very  high  levels  of  trade

payables  due  to  the  huge

purchases of inventory

Low  levels  of

payables


Related Discussions:- Differences in working capital for different industries

Significant performance indicators, Significant Performance Indicators ...

Significant Performance Indicators   Following are the most commonly used performance indicators used to assess the financial, and general health of any company:   Gro

Sophisticated methods of mortgage backed security valuation, MBS ...

MBS are the most complicated securities that are sensitive to interest rates. The factors that affect the price of MBS are varied and most of th

Leverage, evaluate the importance of leverage in financial management of a ...

evaluate the importance of leverage in financial management of a small scale company

What do you mean by misappropriation of fund, Q. What do you mean by Misapp...

Q. What do you mean by Misappropriation Of Fund? Misappropriation Of Funds allotted for specific works under capital or Revenue demand but the expenditure is incurred for anoth

Explain the benefits and drawbacks of financial hedging, What are the benef...

What are the benefits and drawbacks of financial hedging of the firm’s operating exposure vis-a-vis operational hedges (like relocating manufacturing site)? Answer:  Financial he

Enumerate the internal development of any business, Enumerate the Internal ...

Enumerate the Internal development of any business or 'organic growth' Business grows using its own internal resources. - Reduces risk of the high cost of integrating cultur

Bankruptcy and bondholder rights, The holder of a corporate debt inst...

The holder of a corporate debt instrument is preferred to equity shareholders in the bankruptcy proceedings. However, secured/senior creditors are preferred to no

Calculate total development cost, A developer has purchased a commercial of...

A developer has purchased a commercial office site in Melbourne and wishes to develop a building which will be sold to an institutional owner before completion of the building.

Expalin investment intermediaries, Investment intermediaries An investm...

Investment intermediaries An investment intermediary includes finance companies, mutual funds, investment banks and securities firms.

Absolute performance standard, Absolute Performance Standard is a method of...

Absolute Performance Standard is a method of measuring an organization's development and how effective and efficient it is at operating its business. The absolute performance stand

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd