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aggressive approach is more risky than conservative approach .

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13y ago

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An aggressive working capital policy has what characteristics?

An aggressive working capital policy has various characteristics. The main characteristic is having a high ratio of short-term debt to long-term sources of funds.


What is the matching principle of working capital financing?

An all equity capital structure would be the most conservative type of working capital financing plan approach. The more long-term financing used the more conservative the financing plan, and equity is permanent financing.


Can you give me some research topics on working capital management?

Certainly! Research topics on working capital management could include the impact of working capital strategies on firm profitability, the relationship between inventory management practices and cash flow efficiency, and the effects of economic fluctuations on working capital requirements in different industries. Additionally, exploring the role of technology in optimizing working capital management processes or the influence of corporate governance on working capital decisions could yield valuable insights.


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How do calculate an increase in working capital?

To calculate an increase in working capital, first determine the working capital for two different periods by subtracting current liabilities from current assets for each period. The formula is: Working Capital = Current Assets - Current Liabilities. Then, subtract the earlier period's working capital from the later period's working capital. The difference will give you the increase in working capital.


What are the advantages and disadvantages of the aggressive working capital financing approach?

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What is a a working capital?

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What is the optimum working capital?

Optimum working capital is that point where working capital is neither short from requirements nor excess working capital available at any time during fiscal year.


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Optimal working capital is that point where exact amount of working capital is available to run day to day activities and there is no excess or shortage of working capital at any point.


How are your reading strategies working for you?

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How to asses Req of working capital in IT Company?

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What is a working capital statement?

WORKING CAPITAL STATEMENT (WCS) is part of the financial statements' "Statements of Cash Flows or Changes in Financial Position." The WCS normally includes sections covering: Sources of Working Capital, Uses of Working Capital, and Working Capital Changes.