- Trending Categories
Data Structure
Networking
RDBMS
Operating System
Java
iOS
HTML
CSS
Android
Python
C Programming
C++
C#
MongoDB
MySQL
Javascript
PHP
Physics
Chemistry
Biology
Mathematics
English
Economics
Psychology
Social Studies
Fashion Studies
Legal Studies
- Selected Reading
- UPSC IAS Exams Notes
- Developer's Best Practices
- Questions and Answers
- Effective Resume Writing
- HR Interview Questions
- Computer Glossary
- Who is Who
Differentiate between temporary working capital and permanent working capital.
The major differences between temporary working capital and permanent working capital are as follows −
Temporary working capital
- It’s the additional working capital to permanent working capital.
- Variable working capital.
- Dependent on variable factors.
- Sometimes increase/decreases (fluctuates from time to time) in nature.
- Financed through short term funds.
- Categorised into seasonal working capital and special working capital.
Permanent working capital
- It’s the minimum capital to maintain in order to meet operational levels.
- Fixed working capital.
- Independent of variable factors.
- Stable in nature.
- Financed through long term funds.
- Categorised into Regular working capital and reserve working capital.
- Related Articles
- Temporary Working Capital vs Permanent Working Capital
- Differentiate between Net working capital and Gross working capital.
- Difference between working capital and fixed capital.
- Gross Working Capital vs. Net Working Capital
- What is Net Working Capital Ratio?
- What is a Working Capital Cycle?
- Operational Efficiency and Its Effect On Working Capital
- What is Net Working Capital (NWC) Flow?
- What is Net Concept of Working Capital?
- Differentiate between capital account and current account.
- Differentiate between capital expenditures and revenue expenditures
- What are the Risks of Excessive Working Capital?
- What are the Risks of Inadequate Working Capital?
- Impact of Credit Policy on Working Capital Management
- What are the 3 Working Capital Financing Policies?

Advertisements