Advantages and Disadvantages of Fund Flow Statement
There are various advantages and disadvantages of the fund flow statement. One should consider them before forming any view of the sources and uses… Read Article
Working Capital
Fund Flow Statement
A fund flow statement is a statement that reflects the relative position of funds of the company over a two-period horizon. It enables analysis… 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
Disadvantages of Negative Working Capital
Negative working capital (NeWC) is the surplus of current liabilities over the current assets. It is regarded as bad if it disturbs the business… Read Article
How Negative Working Capital is formed? Is it Good or Bad?
In normal circumstances, working capital will never go negative. Negative working capital (NeWC) is formed when short-term liabilities are used for long-term purposes, or… Read Article
Positive Working Capital – Its Advantages and Disadvantages
Positive working capital is the excess of current assets over current liabilities. In other words, when the net working capital is a positive figure,… Read Article
Advantages of Negative Working Capital
The most significant advantage of negative working capital (NeWC) is the holiday from bank funding. It saves the interest cost by getting funds from… Read Article
Negative Working Capital – Formula, Example & its Impact
What is Negative Working Capital?Negative working capital (NeWC) is a financial situation where a company’s current liabilities exceed its current assets. In simpler terms,… Read Article
Temporary or Variable Working Capital
Temporary or variable working capital (TWC) is the temporary fluctuation of net working capital over and above the permanent working capital. It is the… Read Article
Permanent or Fixed Working Capital
Fixed working capital is the minimum investment required in working capital irrespective of any fluctuation in business activity. Also known as Permanent working capital,… Read Article
Disadvantages of Trade Credit
The advantages and disadvantages of trade credit are important points of consideration before forming any decision relating to trade credit. The key advantage of… Read Article