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How does an increase in revenue affect working capital?
Revenue affects the capital by decreasing the capital.
Factors to be considered while estimating the working capital requirement of a manufacturing company?
factor to consider when estimate working capital in finacing project
What factors a financial manager consider while estimating working capital requirements of a firm?
There are many factors that a financial manager will consider while estimating working capital requirements of a firm. The main factors will include the availability of resources and the returns it will bring to the firm.
How does Selling marketable securities for cash affect net working capital?
DECREASES
Difference between working capital and working capital margin?
Working capital is a company's short term financial well being and efficiency. Working capital margin is a sum of the company's gross working assets over the long term.
How to compose a literature review on working capital management?
To compose a literature review on working capital management, you should start by conducting a thorough literature search on reputable databases. Organize the review by introducing the topic, discussing key theories and concepts, presenting the findings from various studies, and identifying gaps for future research. Finally, critically analyze and synthesize the information to provide a comprehensive overview of the current state of knowledge in the field of working capital management.
Factors affecting capital structure?
There are many factors that can affect capital structure. The most common factor is a downturn in the economy. A decrease in sales can also affect the capital structure.
How does an increase in revenue affect working capital?
Revenue affects the capital by decreasing the capital.
Explain the factors detemimining working capital requirements of a firm?
The nature of the business, seasonality of production and the production cycles are some of the factors that determine the working capital requirements of a firm.
According to the classical school prices of factors and products are?
According to the classical school prices of factors and products are capital, fixed capital, working capital, financial capital and technological progress.
Factors to be considered while estimating the working capital requirement of a manufacturing company?
factor to consider when estimate working capital in finacing project
What type factors affect an enzyme from working?
Inhibitors.
What factors a financial manager consider while estimating working capital requirements of a firm?
There are many factors that a financial manager will consider while estimating working capital requirements of a firm. The main factors will include the availability of resources and the returns it will bring to the firm.
How does Selling marketable securities for cash affect net working capital?
DECREASES
What is inflation on working capital?
What_is_inflation_on_working_capitalimpact of inflation onworkingcapital
What are the factors that affect the efficiency of human capital?
There are several factors affecting human resources development in any company. They include political factors, social, technological, legal, and environmental factors.
What is working capital and what factors affect the size of working capital in an enterprise?
Requirements Of working capital depend upon various factors such as nature of business, size of business, the flow of business activities. However, small organization relatively needs lesser working capital than the big business organization. Following are the factors which affect the working capital of a firm:1. Size Of BusinessWorking capital requirement of a firm is directly influenced by the size of its business operation. Big business organizations require more working capital than the small business organization. Therefore, the size of organization is one of the major determinants of working capital.2. Nature Of BusinessWorking capital requirement depends upon the nature of business carried by the firm. Normally, manufacturing industries and trading organizations need more working capital than in the service business organizations. A service sector does not require any amount of stock of goods. In service enterprises, there are less credit transactions. But in the manufacturing or trading firm, credit sales and advance related transactions are in large amount. So, they need more working capital.3. Storage Time Or Processing PeriodTime needed for keeping the stock in store is called storage period. The amount of working capital is influenced by the storage period. If storage period is high, a firm should keep more quantity of goods in store and hence requires more working capital. Similarly, if the processing time is more, then more stock of goods must be held in store as work-in-progress.4. Credit PeriodCredit period allowed to customers is also one of the major factors which influence the requirement of working capital. Longer credit period requires more investment in debtors and hence more working capital is needed.But, the firm which allows less credit period to customers needs less working capital.5. Seasonal RequirementIn certain business, raw material is not available throughout the year. Such business organizations have to buy raw material in bulk during the season to ensure an uninterrupted flow and process them during the entire year. Thus, a huge amount is blocked in the form of raw material inventories which gives rise to more working capital requirements.6. Potential Growth Or Expansion Of BusinessIf the business is to be extended in future, more working capital is required. More amount of working capital is required to meet the expansion need of business.7. Changes In Price LevelChange in price level also affects the working capital requirements. Generally, the rise in price will require the firm to maintain large amount of working capital as more funds will be required to maintain the sale level of current assets.8. Dividend PolicyThe dividend policy of the firm is an important determinant of working capital. The need for working capital can be met with the retained earning. If a firm retains more profit and distributes lower amount of dividend, it needs less working capital.9. Access To Money MarketIf a firm has good access to capital market, it can raise loan from bank and financial institutions. It results in minimization of need of working capital.10. Working Capital CycleWhen the working capital cycle of a firm is long, it will require larger amount of working capital. But, if working capital cycle is short, it will need less working capital.11. Operating EfficiencyThe operating efficiency of a firm also affects the firm's need of working capital. The operating efficiency of the firm results in optimum utilization of assets. The optimum utilization of assets in turn results in more fund release for working capital.
