Capital or amount required to meet the short term or day-to-day

requirements for the companies operations is called working capital.

Working capital = Current Assets - Current Liabilities.
Working capital ratio is a measure of short term financial health, that is
(current assets)/(Current Liabilities) and the ratio between 1 to 2 is
considered as healthy.
If current liabilities are higher than current assets, it means company is
not able to meet the short term liabilities, decline in working capital ratio
can make company bankrupt.
So when you analyze companies financial performance working capital
plays vital role.
Types of working capital..
Working capital is classified into different types and the classification is based on the
following views:

1. Balance Sheet View

2. Operating Cycle View
3.
On the basis of Balance Sheet View, types of working capital are described
below:
GROSS WORKING CAPITAL (GWC)
Current assets in the balance sheet of a company are known as gross
working capital. Current assets are those short-term assets which can be
converted into cash within a period of one year.
The grey area in the management of current assets or gross working
capital is its unpredictability i.e. it is very difficult to ascertain the exact
time of conversion of such assets. Why is such a nature problematic?
It is because the liabilities occur at their time and do not wait for our
current asset to realize.
NET WORKING CAPITAL (NWC) OR WORKING CAPITAL
Net working capital is a very frequently used term. There are two
ways to understand networking capital. First, one says it is simply the
difference between current assets and the current liabilities on the
balance sheet of a business. The other understanding discloses little
deeper or hidden meaning of the term. As per that, NWC is that part
 of current assets which are indirectly financed by long-term assets.
Compared to gross working capital, net working capital is considered
more relevant for effective working capital financing and
management.
On the basis of Operating Cycle View, types of working capital are as
below:
PERMANENT / FIXED WORKING CAPITAL
Dealing with current asset and it is totally different. Determining the
financing requirement in the case of fixed assets is simply the cost of
the asset.
Same is not true for current assets because the value of current
assets is constantly changing and it is difficult to accurately forecast
that value at any point in time.
To simplify the complexity to some extent, on the basis of past trend
and experience, we can find a level below which current asset has
never gone.
The current assets below this level are called permanent or fixed
working capital. See the example below:
How to calculate it

Net Working Capital refers to the excess of total current assets over total
current liabilities.

Mathematically,

NWC = Total Current Assets - Total Current Liablities.

The net working capital (NWC) formula is:

Net Working Capital = (Cash and Cash Equivalents) + (Marketable

Investments) + (Trade Accounts Receivable) + (Inventory) – (Trade
Accounts Payable)

– OR –

Net Working Capital = (Current Assets) – (Current Liabilities)

It is a contract between an individual and an insurer,wherin the insurer
gurantess to pay a certain sum of money…
Life insurance policy is a type of insurance that provides coverage
against the unexpected death

It is nothing but a safety net which provides financial security,protection

provideagainst loss of life

There are 3 aspects of life insurance

Premium…an individual is accorded cover only if he/she pays a

certain sum of money towards the policy..this is known as premium.one
can consider it bbe the intial in vestment which offers returns in the
future

Death b enefits /sum assured..this is the money which the insurer

assures to pay to the nominee of the policy holder after his/her demise

Term-an insurance policy …an insurance policy provides protection for a

certain period of time..this is called the term

Types of life insurance products in india

Term insurance policy…provides life cover for a specific and limited

period of time

ULIPs…provide life cover and investment options

Endowment policy…provides life cover and a lump sum payout at
maturity
WHOLE LIFE POLICY…PROVIDES LIFETIME COVERAGE TO THE
POLICYHOLDER
ANNITY/PENSION POLICY…PROVIDDES A regular income during
ones retirement years
Money back policy..provides s survival benefit or a death benefit and can
serve as an income replacement