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Net working capital refers to the excess of current assets over current liabilities. It is calculated as total current assets minus total current liabilities. This provides a measure of a company's short-term liquidity and financial flexibility. A company needs to maintain an adequate level of net working capital to meet its day-to-day operational expenses and current liabilities when they fall due. Different types of working capital include gross working capital, net working capital, permanent/fixed working capital, and flexible/variable working capital.
Net working capital refers to the excess of current assets over current liabilities. It is calculated as total current assets minus total current liabilities. This provides a measure of a company's short-term liquidity and financial flexibility. A company needs to maintain an adequate level of net working capital to meet its day-to-day operational expenses and current liabilities when they fall due. Different types of working capital include gross working capital, net working capital, permanent/fixed working capital, and flexible/variable working capital.
Net working capital refers to the excess of current assets over current liabilities. It is calculated as total current assets minus total current liabilities. This provides a measure of a company's short-term liquidity and financial flexibility. A company needs to maintain an adequate level of net working capital to meet its day-to-day operational expenses and current liabilities when they fall due. Different types of working capital include gross working capital, net working capital, permanent/fixed working capital, and flexible/variable working capital.
Capital or amount required to meet the short term or day-to-day
requirements for the companies operations is called working capital.
Working capital = Current Assets - Current Liabilities. Working capital ratio is a measure of short term financial health, that is (current assets)/(Current Liabilities) and the ratio between 1 to 2 is considered as healthy. If current liabilities are higher than current assets, it means company is not able to meet the short term liabilities, decline in working capital ratio can make company bankrupt. So when you analyze companies financial performance working capital plays vital role. Types of working capital.. Working capital is classified into different types and the classification is based on the following views:
1. Balance Sheet View
2. Operating Cycle View 3. On the basis of Balance Sheet View, types of working capital are described below: GROSS WORKING CAPITAL (GWC) Current assets in the balance sheet of a company are known as gross working capital. Current assets are those short-term assets which can be converted into cash within a period of one year. The grey area in the management of current assets or gross working capital is its unpredictability i.e. it is very difficult to ascertain the exact time of conversion of such assets. Why is such a nature problematic? It is because the liabilities occur at their time and do not wait for our current asset to realize. NET WORKING CAPITAL (NWC) OR WORKING CAPITAL Net working capital is a very frequently used term. There are two ways to understand networking capital. First, one says it is simply the difference between current assets and the current liabilities on the balance sheet of a business. The other understanding discloses little deeper or hidden meaning of the term. As per that, NWC is that part of current assets which are indirectly financed by long-term assets. Compared to gross working capital, net working capital is considered more relevant for effective working capital financing and management. On the basis of Operating Cycle View, types of working capital are as below: PERMANENT / FIXED WORKING CAPITAL Dealing with current asset and it is totally different. Determining the financing requirement in the case of fixed assets is simply the cost of the asset. Same is not true for current assets because the value of current assets is constantly changing and it is difficult to accurately forecast that value at any point in time. To simplify the complexity to some extent, on the basis of past trend and experience, we can find a level below which current asset has never gone. The current assets below this level are called permanent or fixed working capital. See the example below: How to calculate it
Net Working Capital refers to the excess of total current assets over total current liabilities.
Mathematically,
NWC = Total Current Assets - Total Current Liablities.
The net working capital (NWC) formula is:
Net Working Capital = (Cash and Cash Equivalents) + (Marketable
Net Working Capital = (Current Assets) – (Current Liabilities)
It is a contract between an individual and an insurer,wherin the insurer gurantess to pay a certain sum of money… Life insurance policy is a type of insurance that provides coverage against the unexpected death
It is nothing but a safety net which provides financial security,protection
provideagainst loss of life
There are 3 aspects of life insurance
Premium…an individual is accorded cover only if he/she pays a
certain sum of money towards the policy..this is known as premium.one can consider it bbe the intial in vestment which offers returns in the future
Death b enefits /sum assured..this is the money which the insurer
assures to pay to the nominee of the policy holder after his/her demise
Term-an insurance policy …an insurance policy provides protection for a
certain period of time..this is called the term
Types of life insurance products in india
Term insurance policy…provides life cover for a specific and limited
period of time
ULIPs…provide life cover and investment options
Endowment policy…provides life cover and a lump sum payout at maturity WHOLE LIFE POLICY…PROVIDES LIFETIME COVERAGE TO THE POLICYHOLDER ANNITY/PENSION POLICY…PROVIDDES A regular income during ones retirement years Money back policy..provides s survival benefit or a death benefit and can serve as an income replacement