How zero working capital concepts explained in terms of cash conversion cycle?
The cash conversion cycle (CCC) is one of several measures of management effectiveness. It measures how fast a company can convert cash on hand into…
Business
Zero Working Capital
Zero Working Capital Working capital is the comparison of current assets to current liabilities. For most organizations, current assets exceed current liabilities and working capital,…
Short Term Financing
Short term financing is business financing that you obtain usually for a term of one year or less. This type of financing is usually required…
Working Capital Cycle
Working Capital Cycle Working capital is the amount of a company’s current assets minus the number of its current liabilities. Working capital cycle means the…
How is working capital affected by Sales; Technology and Inflation?
Working capital is the amount of a company’s current assets minus the number of its current liabilities. The formula for working capital is Current Assets…
Inventory Financing
Inventory Financing: Short term fund can also be raised by pledging inventory as collateral, using floating collateral lines trust receipts, terminal warehouse receipts, field warehouse…
Advantage and Disadvantage of Internal Rate of Return (IRR)
An internal rate of return (IRR) is a metric used in capital budgeting measuring the profitability of potential investments. An internal rate of return is…
Advantage and Disadvantage of Net Present Value (NPV)
Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows. NPV is used in…
Possibilities of Net Present Value (NPV)
Possibilities of Net Present Value (NPV) – Net present value is the difference between the present value of cash inflows and the present value of…
Techniques for Measuring Beta Risk
The stock of beta coefficient, ‘β’ is a measure of the stock’s market risk. Beta measures the volatility of returns on a security relative to…
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