What is the working capital of the company?
The working capital of the company is usually defined as between fixed capital and fixed assets. Another definition says about the difference between current assets and short-term sources of financing.
What for is working capital needed to company?
Working capital is the protection of the current business situation when customers are late with payments, or if the company has a problem with the disposal of their products.
What are methods of management of working capital in the company?
There are several strategies and among others we could say something more about the following strategies:
– High profit- high risk, this strategy implies an aggressive strategy for both the liabilities and assets.
– Average profit- medium risk, it can take two forms, but an aggressive strategy in relation to the assets and quiet compared to liabilities, or vice versa.
– Small profit- low risk, both assets and liabilities are subject to minor changes or no changes.