Credit Period – Meaning, Formula, Advantages and More
The credit period is the timeframe when a person purchases goods or services and when they pay for them. Or, we can say it… Read Article
Working Capital Cycle
Working Capital Management
Working Capital Management DefinitionThe term working capital management refers to the efforts of the management towards the effective management of current assets and current… Read Article
Importance of Operating Capital in Business
Operating Capital – DefinitionOperating capital is defined as the cash required for running the daily operations of the company. Successful business operations rely on… Read Article
Working Capital
What is Working Capital?Working capital (WC) is the capital that helps in running the day-to-day operations of a business. It is the gap between… Read Article
Advantages and Disadvantages of Working Capital Management
What is Working Capital Management?Working Capital Management is a strategy framed and adopted by business managers to monitor the working capital (working capital means… Read Article
Cash Conversion Cycle
What is Cash Conversion Cycle?The Cash Conversion Cycle or CCC is the number of days a business entity takes to convert its input resources… Read Article
Importance of Working Capital Management
Working capital is part of the total assets of the company. Generally, it is the difference between current assets and current liabilities. Practically speaking,… Read Article
Working Capital Cycle
What is Working Capital Cycle (WCC)?Working Capital Cycle (WCC) refers to the time taken by an organization to convert its net current assets and… Read Article
Objectives of Working Capital Management
The primary objective of working capital management is to ensure a smooth operating cycle of the business. The secondary objectives are to optimize the… Read Article
Working Capital Estimation – Operating Cycle Method
What does Operating Cycle Method do?Operating cycle method for estimating working capital is based on the duration of the operating cycle. The longer the… Read Article
Operating and Cash Operating Cycle
Operating CycleOperating cycle and cash operating cycle are used interchangeably, but it’s a misconception. They are different by a small margin, but that makes… Read Article