WORKING CAPITAL MANAGEMENT

I wrote this book Woking capital management with the following objectives.

·        To demonstrate to readers that the subject of Woking capital management simple to understand, relevant in practice and interesting to learn.

·        To help managers appreciate the logic for making better financial decisions.

·        To explain the concepts and theories of Woking capital management in a simple way so readers could grasp them very easily and be able to put them in to practice.

·        To provide a book that has a comprehensive coverage for ratios and their analysis.

·        To create a book that differentiates itself from other books in terms of coverage, presentation.

This book useful to Students, Job Interviews, Investors, Financial advisers, Financial managers and Fund managers to relate theories, concepts and data interpretation to practice.

This book Woking capital management aims to assist the reader to develop a thorough understanding of the concepts and theories underlying financial management in a systematic way. To accomplish this purpose, the recent thinking in the field of finance has been presented in a most simple, and precise manner.

The main features of the book are simple understanding and key concepts.

The book contains a comprehensive analysis of topics on Woking capital management with a view that readers understand financial decisions thoroughly well and are able to evaluate their implications for shareholders and the company.

This book begins with the discussion of Introduction of Woking capital management. With this foundation, readers can easily understand the ratios, decision criteria necessary to manage the funds and create and enhance the value of the firm.

The text material has been structured to focus on Woking capital management is in the financial decision making process.

The book discusses the theories, concepts, assumptions, underlying financial decisions i.e.  investment, financing, dividend and working capital management.

It is hoped that this will facilitate a better understanding of the subject matter.

 

CONTENTS

1. Introduction

2. Concepts of working capital

       Gross working capital

       Net working capital

3. Current assets management

4. Liquidity management

        Measures of liquidity

             Current ratio

              Liquid ratio

              Net working capital ratio

5. Operating cycle

        Types of operating cycle

             Gross operating cycle

                  Inventory conversion period

                       Raw material conversion period

                       Work-in-progress conversion period

                       Finished goods conversion period

                 Debtors conversion period

            Net operating cycle

                 Creditors deferral period

6. Statement of Cost of sales

7. Permanent and variable working capital

8. Balanced working capital maintain

        Excessive working capital

        Inadequate working capital

9. Policies for financing current assets

        Short-term financing

         Long-term financing

         Spontaneous financing

10. Estimating working capital requirement

          Methods of estimating WC requirement

               Current assets holding period

               Ratio of sales

               Ratio of fixed investment

11. Factors influencing working capital

12. Advantages of working capital

 

13. Problems and Solutions

           Case 1 and solution

           Case 2 and solution

           Case 3 and solution

           Case 4 and solution

           Case 5 and solution