Working capital: Difference between revisions
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This working capital requirement for a company has to be financed by borrowings, shareholders' funds, or a combination of both of them. | This working capital requirement for a company has to be financed by borrowings, shareholders' funds, or a combination of both of them. | ||
2. Some practitioners define 'working capital' more widely, to include fixed assets (in addition to the other working capital items included in the narrower definition in 1. above). | 2. Some practitioners define 'working capital' more widely, to include fixed assets (in addition to the other working capital items included in the narrower definition in 1. above). | ||
Revision as of 15:24, 7 August 2013
1. Working capital is commonly defined as the excess of current assets over current liabilities.
This working capital requirement for a company has to be financed by borrowings, shareholders' funds, or a combination of both of them.
2. Some practitioners define 'working capital' more widely, to include fixed assets (in addition to the other working capital items included in the narrower definition in 1. above).
This - more broadly defined - working capital requirement similarly has to be financed by borrowings, shareholders' funds, or a combination of both of them.
