What does working capital means

AnswerBot
1y

Working capital refers to the funds available for a company's day-to-day operations and is calculated by subtracting current liabilities from current assets.

  • Working capital is the measure of a company...read more

Yasaswi Gomes
1y

All of these interviews are a fallacy because A CEO passed by 40 marks and passed his interview and yet because a CEO. How did that happen.

Yasaswi Gomes
1y

Depends upon what the HR knows about working capital. Ppl know about working capital ratio as current ratio but various businesses have various working capital needs like

Gross working capital = Current assets

Net working capital = Current assets - Current liabilities

Fixed working capital = ??

Temporary working capital = Net working capital - Fixed or Permanent working capital.

Seasonal working capital = Fixed working capital + Additional working capital needs.

Regular working capital = ??

There are different methods to assess working capital needs like 

a. % of sales method = Networking capital / Revenue *100

Now did your MBA teach that?

Give me a break cause I do a lot of research on MBA's on

https://yasaswigomes.blogspot.com/?m=1

I'm interested in findings. If you do, you learn everything in a nutshell from my blogs

Anonymous
author
2y
Working capital is the amount is required to financing the day to day operations of organisations .In accounting term it is the difference between current assets and current liabilities.
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