- Description
- Specifications
One of the most sensitive and critical areas in the financial management of a business is its working capital structure. The lack of control on working capital is one of the most significant reasons for failure in small/medium enterprises.
Businesses which are profitable can still get into financial difficulties by tying up too much of their cash in investments in Debtors, Stock and Work in Progress. Most businesses need to have an investment in at least two of these assets - but if that investment is not controlled and monitored on an ongoing basis, then problems can arise very quickly because the business will find itself short of cash to pay for purchases or services that it needs to ensure its own business survival.
The paper analyses "Working Capital Life Blood Of A Business" under the following headings:
- Working Capital Structure
- Definitions Are Included On:
- Current Assets
- Current Liabilities
- Working Capital
- Quick Ratio
The paper then analyses the business cash cycle which applies to:
- Manufacturing Enterprises
- Retail
- Professional Services
- Trades And Service Industries
- Financial Industry
The paper also considers critical points in relation to:
- Working Capital
- Cashflow Budget
- Causes Of Shortage Of Cash
- Control Of Cash Is Dependent On Other Items