WORKING CAPITAL MANAGEMENT


WORKING CAPITAL MANAGEMENT

Working capital is a requirement of funds to company to meet day to day expenses. Some time liquidity (a currency of money that people have in their pocket is known as liquidate) is very less and unable to meet. It is also known as current assets and current liabilities.

There are three conditions  to identify the working capital

·         If current asset are more the then current liabilities then you are doing good and working capital is high
·         If current asset are less the then current liabilities then you are doing poor and working capital is low
·         If current asset are equal to the then current liabilities then you are doing fine and working capital is equal


Without working capital an enterprise is failed. For that you need money to run your business and fulfill the daily needs.

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