Working capital: Difference between revisions

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* [[Liquidity management]]
* [[Liquidity management]]
* [[Over trading]]
* [[Over trading]]
* [[Supply chain finance]]
* [[Working capital management]]
* [[Working capital management]]

Revision as of 09:30, 20 June 2016

Working capital is normally defined as the excess of current assets over current liabilities.

It represents the day to day capital requirement to continue the operations of the organisation.


In simple terms, it can be calculated as:

Stock

ADD Trade debtors

LESS (Trade creditors)

= Working capital


This working capital requirement has to be financed by borrowings, shareholders' funds, or a combination of both of them.


See also