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Working Capital
a) Working capital or called gross working capital also, refers as current assets.
b) Net working capital refers to current assets minus current liabilities.
c) Working capital management of current liabilities and current assets refers to the administration.
d) Liquidity management includes the planned acquisition and employ of liquid resources over time to meet cash obligations like they become due. The firm's liquidity is measured with liquidity ratio like as current ratio, acid or quick test ratio, cash ratio and so on.
Lock-Box System In a lock-box system, the customer sent the payments to a post office box. The post office box is emptied with the firm's bank at minimum once or twice all bus
Leverage or Gearing Ratios Leverage or gearing ratios are as follow: a) Debt ratio = Total debts/Total assets Whereas total debt = fixed charge capital + liabilities.
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