How to calculate the working capital requirement
ID:CVWCR
Video Overview
The efficient management of net working capital is vital to the short-term liquidity of a business. Net working capital is the difference between current assets and current liabilities. Determining the working capital requirement for the budgeted period is an important management function. The required level of inventory, the debtors’ collection period, and the creditors’ payment period are needed to calculate working capital requirements. In this tutorial we will focus on how to calculate the working capital requirement.
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