The document discusses working capital management. It defines working capital as the excess of current assets over current liabilities, representing the funds available to run day-to-day operations. It notes that working capital management involves managing current assets like cash, debtors, and inventory as well as current liabilities like creditors. Proper working capital management is important for business liquidity, profitability, and survival, especially in today's competitive environment. The key steps in working capital management include cash management, debtors management, inventory management, and creditors management.
A simple and comprehensive presentation on Profit maximization v/s Wealth Maximization.
By Arvinder Pal Kaur
Faculty of Management
Northwest Group of Institutions
Dhudhike, MOGA
A simple and comprehensive presentation on Profit maximization v/s Wealth Maximization.
By Arvinder Pal Kaur
Faculty of Management
Northwest Group of Institutions
Dhudhike, MOGA
The capital which is needed for the regular operation of business is called working capital. 1- for the purchase of raw materials
2- for the payment of wages
3- payment of rent and of other expenses
Working capital is kept in the form of cash, debtors, raw materials inventory, stock of finished goods, bills receivable etc.
Size Of Business
Nature Of Business
Storage Period
Credit Period
Seasonal Requirement
Potential Growth Or Expansion Of Business
Changes In Price Level
Dividend Policy
Working Capital Cycle
Operating Efficiency
Other Factors
Working 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.
Working capital requirement depends also 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. But in the manufacturing or trading firm, credit sales and advance related transactions are in large amount.
Time 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. if the storage Period is less , then more stock of goods must be held in store as work-in-progress.
Working capital management — factors determining working capital — estimation of working capital —inventory management techniques — receivables management — management of cash and marketable securities — techniques of cash management — committees on working capital and their findings and recommendations.
it is useful for MBA 2nd semister students. they didn't know the proper information about the working capital management. so , that's why i prepare the some introduction part for this concept.
The capital which is needed for the regular operation of business is called working capital. 1- for the purchase of raw materials
2- for the payment of wages
3- payment of rent and of other expenses
Working capital is kept in the form of cash, debtors, raw materials inventory, stock of finished goods, bills receivable etc.
Size Of Business
Nature Of Business
Storage Period
Credit Period
Seasonal Requirement
Potential Growth Or Expansion Of Business
Changes In Price Level
Dividend Policy
Working Capital Cycle
Operating Efficiency
Other Factors
Working 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.
Working capital requirement depends also 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. But in the manufacturing or trading firm, credit sales and advance related transactions are in large amount.
Time 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. if the storage Period is less , then more stock of goods must be held in store as work-in-progress.
Working capital management — factors determining working capital — estimation of working capital —inventory management techniques — receivables management — management of cash and marketable securities — techniques of cash management — committees on working capital and their findings and recommendations.
it is useful for MBA 2nd semister students. they didn't know the proper information about the working capital management. so , that's why i prepare the some introduction part for this concept.
Part of a lecture series on fundamental project management concepts, the lecture presents an overview of project selection methods: scoring,benefit contribution, and economic models.
Planning is bringing the future into the present, so that you can do something about it now. Wise money management can take a lot of worry out of your life.
Know some amazing and important Financial planning tips.
This chapter included, Meaning and concepts of working capital Management , Operational environment for working capital Management and Determinants of working capital
Report on summer internship project of Himalayan Bank Limited.priyanka sarraf
A SUMMER INTERNSHIP PROJECT ON “A Comparative study of Himalayan Bank Ltd. and Everest Bank Ltd., with special reference to customer feedback on product and services offered by Himalayan Bank Limited”
Presentation on summer internship project of bank priyanka sarraf
A SUMMER INTERNSHIP ON “A Comparative study of Himalayan Bank Ltd. and Everest Bank Ltd., with special reference to customer feedback on product and services offered by Himalayan Bank Limited”
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
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USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
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• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
2. Meaning of working capital
In very simple terms working capital means the amount required to do day to day
business smoothly. It is excess of current assets over current liabilities.
From another point of view we can say that WC is that part of CA (i.e. raw
material) which is required to run the fixed assets (i.e. machine) profitably.
WC = CA – CL
CURRENT ASSETS
Current assets are those assets which can be converted into cash within one year or less then one year.
In current assets, we include cash, bank, debtors, bill receivables, prepaid expenses, outstanding
incomes .
CURRENT LIABILITIES
Current Liabilities are those liabilities which can be paid to respective parties within one year or less
than one year at their maturity. In current liabilities, we include creditors, outstanding bills, bank
overdraft, bills payable and short term loans, outstanding expenses, advance incomes .
3. WORKING CAPITAL
VALUE TIME
NET WC PERMANENT WC TEMPORARY WC
CURRENT
ASSETS
DIFFERENCE
OF CA & CL
MINIMUM INVESTMENT
THROUGHOUT THE YEAR
INVESRMENT ABOVE
PERMANENT WC
CASH POSITIVE NEGATIVE CURRENT ASSETS VARIABLE WC
< 1YEAR ABLE TO
PAY SHORT
TERM LOAN
UNABLE TO
PAY SHORT
TERM LOAN
MINIMUM LEVEL
OF ACTIVITIES
FLUCTUATING
(SEASONS,FESTIVALS, ETC.)
WORKING CAPITAL
GROSS WC
4. ON THE BASIS OF VALUE IT HAVE TWO TYPES OF WC
1) Gross WC
The gross working capital refers to investment in all the current assets. It is also
known as Gross current assets. The sum of all of a company's current assets (assets
that are convertible to cash within a year or less).
2) NET WC
It is a difference between current assets and current liabilities. It is the amount
invested by the promoters on the current assets of the organization.
5. ON THE BASIS OF TIME IT HAVE TWO TYPES WC
1) Permanent working capital
Minimum amount of investment in current assets required at all point of time.
Remains in the business in one form or another.
Grows with the size of the business.
Financed by long term funds.
2) Temporary working capital
Variable working capital, required by business over and above permanent working capital.
Additional current assets required at different point of time.
E.g. Extra inventory should be maintained during peak sales period like festivals, seasons, etc.
Will decrease in depression periods or off seasons.
Financed from short term loans.
6. Is it a issue of today’s business?
Yes, it is. Because every business landscape has become:
Competitive
Complex
Ever-changing
So, building a profitable business and ensuring its success in future is increasingly
difficult now.
Also it is facing problems like:
Shortage of cash
Heavy bad debts
Cash block in inventories
Spoiling reputation by late payment to creditors because of shortage of cash itself.
These all arises due to inefficient working capital management. So, it has become a
significant issue in today’s business that how to manage it to optimize profit and
ensure success.
7. ANALYSIS OF WORKING CAPITAL
WC LargeInadequate
Adequate
(Short term and Long term)
Idle Funds
Risk
Survival
(At different Points of Time)
Cost
Insolvency
Growth
Interest Payment
The standard favorable ratio of CA in relation to CL is 2:1, this means, a company has total
liabilities of one rupee. And, to pay that liability it has available cash or (say liquidity status) of two
rupees. OR, say it has sufficient current assets to meet its current liability.
Note: This ratio may vary as per the nature of business.
8. IMPORTANCE OF WORKING CAPITAL MANAGEMENT
Working capital management is required to use fixed assets profitability.
For e.g. Machine cannot be used productively without raw materials etc.
Funds are required for day to day operations and transactions. These are
provided by cash and cash equivalents, forming part of current assets.
Adequate working capital determine the short term solvency of the firm.
Increase in activity levels and sales should be backed up by suitable
investment in working capital to expand business.
Adequate working capital enables a firm to face business crisis in
emergencies such as depression.
9. WORKING CAPITAL
MANAGEMENT STEPS
CURRENT ASSETS
MANAGEMENT
CURRENT LIABILITIES
MANAGEMENT
CASH MANAGEMENT
DEBTORS MANAGEMENT
INVENTORY MANAGEMENT
CREDITORS
MANAGEMENT
OTHER SHORT
TERM LIABILITIES
MANAGEMENT
10. STEPS OF WORKING CAPITAL MANAGEMENT
The techniques should be applied in different items of working capital (like cash,
debtors, inventory, creditors.)
1) CASH MANAGEMENT (MOST IMPORTANT ASPECT OF WC)
Cash planning: The pattern of cash inflows and outflows should be properly
predicted in advance by preparing cash budgets.
Managing the cash flows: The cash inflows should be accelerated/speeded up, while
as far as possible, the cash outflows should be decelerated.
Optimum cash level: The optimum level of cash balance should be determined by
balancing the twin objectives of liquidity and profitability.
Investing surplus cash: Surplus cash should be properly invested to earn profits. The
firm should determine the timing and quantity of investment of surplus cash.
11. 2) DEBTORS MANAGEMENT
Collecting debts on time.
Setting credit limits i.e. 10/15/30 or so on.
Providing discounting facilities for early payment.
Enforcing a clear credit policy.
Considering debtor finance.
3) INVENTORY MANAGEMENT
Classification and codification of inventory.
Maintenance of inventory records.
Control of the cycle flow of materials.
Control of tools.
Store room management.
12. 4) CREDITORS MANAGEMENT
Find reliable and competitively prices suppliers.
Negotiate clear, written agreements from the outset.
Communicate with the suppliers.
Improve systems for paying suppliers.
Keep good records.
5) OTHER SHORT TERM LOAN(STL) MANAGEMENT
Payment of outstanding salaries, wages, expenses, etc.
Payment of outstanding duties and taxes, outstanding interest, etc.
Payment of short term loans.
13. CONCLUSION
From all the above discussion we can conclude that Working Capital
Management is one of the tending CONTEMPORARY ISSUE which
the business enterprises and organizations are facing now-a-days. So,
they should apply the Working Capital Management techniques and
prepare SMART PLANS for procurement of Working Capital for the
growth, profitability and ultimate success of their business.