Tag Archives: working capital

Approaches to determine financing of working capital

There are mainly 3 approaches to determine financing of working capital. Let us discuss them one by one: 1) Hedging approach or matching approach: this approach means matching the maturities of debt with the maturity of financial needs. It means … Continue reading

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Principle of working capital management policy

The following are the 4 principles of working capital management policy: 1) Principle of equity position: as per this principle every investment in the current assets should contribute to the net worth of the firm. The position of current assets … Continue reading

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