What is Working Capital Management ? Give the formula for
it
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Answer Posted / pawan kumar
working capital is nothing but the capital required for the
cost of operation and daily needs such as purchase of raw
material,payement of wages etc
generally there are two types of working capital management
net working capital
gross working capital
Net working capital is the net investiment for current
assets
therefor net working capital =current assets-current
liablities
so managing the requirement of working capital limits by a
firm so that it is able to meet the working capital limits
to meet its day to day cost of operations is working
capital management.
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