Working capital, Financial Management

Assignment Help:

Working Capital

Working capital is measured as the difference among organization present assets and its current liabilities. Therefore, it is interpreted by some as a measure of a firm's liquidity or its ability to pay its bills on a short-term basis. However, excess investment in working capital can be costly for a firm as the rate of return on an organization working capital is likely to be lower than alternative long-term investment project returns. Therefore, the maintenance of excessively high working capital builds too much liquidity and hence lowers overall returns.


Related Discussions:- Working capital

Major objective of working capital management, Q. Major objective of workin...

Q. Major objective of working capital management? The major objective of working capital management is to decide the optimum amount of working capital required. Usually managem

Explain the tests of controlor systems based auditing, Tests of controlor s...

Tests of controlor systems based auditing Tests to obtain audit evidence about effective operation of the accounting and internal control systems. It isn't concerned about deta

Global equity indexes, Global Equity Indexes: As described earlier in t...

Global Equity Indexes: As described earlier in this chapter, there are several stock market indexes available which depict the performance of particular sectors and a country a

Identify following belong income statement or the balance, Identify whether...

Identify whether the following items belong on the income statement or the balance sheet. a. Interest Expense IS                                      l. Cash BS b. Prefer

What the term objective denotes- financial management, What the term object...

What the term objectives denotes- financial management It must be noted at the outset that term 'objective' is used in the sense of a goal or decision criterion for three decis

Discuss about stock market and stock exchanges , Successful managers and in...

Successful managers and investors understand the various financial markets and the investments these markets offer. A good understanding of potential gains and losses, as well as t

Net present value (npv), Net Present Value (NPV) : In this technique, f...

Net Present Value (NPV) : In this technique, future cash flows are discounted to the present and then compared with the investment outlay. The basic discount rate is generally

Explain foreign equity ownership restrictions, Explain foreign equity owner...

Explain foreign equity ownership restrictions. Why do you think countries entail these restrictions? Several countries restrict the maximum fractional ownership of local organiza

Explain the rapid development of interest rate swap market, If the cost ben...

If the cost benefits of interest rate swaps would similarly be arbitraged away in competitive markets, what other descriptions exist to explain the rapid development of the interes

Calculate the percentage of price change and regular bonds, Flying High Inc...

Flying High Inc. plans to raise $5,000,000 external financing through issuing bonds, and is considering two options: regular bonds and zero couple bonds.  The regular bonds will ha

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