Probir Banerjee has Published 444 Answers

Effect of Credit Policy and Price Level Changes On Working Capital

Probir Banerjee

Probir Banerjee

Updated on 29-Jun-2022 13:28:24

Every business requires a smooth working capital management policy in order to remain in good health and compete with its competitors. The policies a business adopts affect its working capital management norms.For example, the credit policy of the firm and price level changes affect the firm’s financial norms greatly. Here’s ... Read More

Importance of Capital Management for Financial Managers

Probir Banerjee

Probir Banerjee

Updated on 29-Jun-2022 13:27:25

What is Net Working Capital Management?The concept of net working capital management should be applied to organizations individually as there is no precise measure to which the net concept of working capital management should be applied to a firm. It depends on the financial status and needs of an organization ... Read More

Impact of Credit Policy on Working Capital Management

Probir Banerjee

Probir Banerjee

Updated on 29-Jun-2022 13:26:13

Role of Credit PolicyIt is known to all that having a good amount of working capital is necessary for the smooth functioning of businesses. For example, the credit policy of a company plays a pivotal factor in managing the working capital of a company.Companies often need to sell their products ... Read More

Operational Efficiency and Its Effect On Working Capital

Probir Banerjee

Probir Banerjee

Updated on 29-Jun-2022 13:24:52

What is Operational Efficiency?Operating efficiency is the efficiency that is obtained due to efficient utilization of fixed and current assets and other resources of the firms. It is an indicator of better management and good health of a business firm. Operating efficiency is not easy to obtain because all of ... Read More

What are the Factors Affecting a Company’s Working Capital?

Probir Banerjee

Probir Banerjee

Updated on 29-Jun-2022 13:22:40

Although there are no hard and fast rules for determining the working capital for a company, there are many factors that affect it. It is the duty of management to judge the right amount of working capital for running the organization and keep the adequate amount of working capital available ... Read More

What are the Risks of Inadequate Working Capital?

Probir Banerjee

Probir Banerjee

Updated on 29-Jun-2022 13:19:50

What is a Working Capital?Working capital is the fuel for running businesses the companies. It may be stated that maintaining an adjusted amount of working capital is the first and foremost aim of business organizations. While having too much working capital is bad, an inadequate amount of working capital can ... Read More

What are the Risks of Excessive Working Capital?

Probir Banerjee

Probir Banerjee

Updated on 29-Jun-2022 13:18:09

What is a Working Capital?Both temporary and permanent working capital are necessary to run a business smoothly. Working capital acts as fuel in running business activities. While temporary working capital provides the expenses to meet general day-to-day needs, permanent working capital helps businesses meet larger demands in the future.As working ... Read More

How to Calculate Operating Cycle of a Bank?

Probir Banerjee

Probir Banerjee

Updated on 29-Jun-2022 13:16:23

What is an Operating Cycle?An operating cycle is the time needed to convert sales into cash after converting the resources into inventories. In fact, no company generates sales after the production of a good instantly. It has to wait for some time to sell the goods in the market after ... Read More

Temporary Working Capital vs Permanent Working Capital

Probir Banerjee

Probir Banerjee

Updated on 29-Jun-2022 13:13:43

The major differences between Temporary and Permanent working capital are as follows −Based on NeedsTemporary and permanent working capital differ in terms of their need. The permanent working capital is a fixed amount of working capital that is kept fixed for the long-term needs of the business. The temporary working ... Read More

How to Calculate a Manufacturing Company's Operating Cycle?

Probir Banerjee

Probir Banerjee

Updated on 29-Jun-2022 13:09:07

The operating cycle is the time required for converting sales into cash after converting resources into inventories. The operating cycle of a manufacturing firm is different from non-manufacturing companies because manufacturing companies need to resource raw materials and convert them into finished goods. While non-manufacturing companies can go directly from ... Read More

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