Prepared by:- Minal Patel

S.Y.B.com
Roll no.
Topic of presentation:- working capital
Subject:- financial analysis
Meaning of working capital-
There are two concept of working capital:
Gross and Net.
It represent the amount of day-to-day
operating liquidity to a business.
It is positive if company is able to payoff its
short-term liability otherwise it is negative.
Determinants of working capital:
Nature of business.
Market and demand conditions.
Technology and manufacturing policies.
Credit policy of the firm.
Availability of credit from suppliers.
Operating efficiency.
Price level changes.
Working capital cycle-
cash
debtors

Raw material
labour
overhead

stock
Work in
progress
Estimating working capital needs:
Current assets holding period.
Ratio of sales.
Ratio of fixed investment.
Reference:- module of cost accounting and
financial management.