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WORKING CAPITAL MANAGEMENT

What is working capital in the context of financial management?
Working capital refers to the funds required to meet day-to-day operational needs of a business, calculated as current assets minus current liabilities.
What is the concept of Gross Working Capital?
Total current assets of a firm without deducting liabilities.
What is the formula for Net Working Capital?
Net Working Capital = Current Assets − Current Liabilities. A positive value indicates the firm can meet its short-term obligations comfortably.
What is the Cash Conversion Cycle (CCC)?
Time taken to convert investments in inventory into cash flows.
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