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Answer Posted / laymanblog
The funds which are required to carry the day to day
operations of an company. Its basically the short term funds
required to carry the business. The number(WC=CA-CL) depends
on sector to sector(basically fmcg sector has even negative
wc, which doesnot mean its not performing well, it means it
could able to pay its current liabilities from its current
assets itself. The days of Creditor Turnover (CTR), and Debtor
Turnover (DTR) has to be considered)
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