What is working capital? How does a company manage its four main working capital components: stock-in-trade, trade debtors, cash, and trade creditors?
Working capital is the firm's total current assets used in operations. Net Working Capital means the difference between current assets and current liabilities, and therefore, represents that position of current assets, which the firm has to finance either from long-term funds or bank borrowings. (Pandey, I.M.)
Managing inventory is a juggling act. Excessive stocks can place a heavy burden on the cash resources of a business. Insufficient stocks can result in lost sales, ...
309 words explain how to manage these issues as part of a large company.