1. PRESENTATION ON WORKING CAPITAL
PRESENTED BY :KARAN THUKRAL
KARAN DEEP SINGH

2. Working Capital
 Every Business requires Funds for financing day
to day operations. It is the money needed to fund the
normal, day to day activities of a business.
 It is calculated by current assets minus current
liabilities .
Working capital = Current assets – current liabilities

3. BASIC CONCEPT OF WORKING CAPITAL
GROSS
WORKING
CAPITAL
NET WORKING
CAPITAL

4. It is divided into 2 parts
 Gross working capital
 Net working capital
Gross working capital : The sum of all of a company's current
assets. Gross working capital includes assets such as cash, stock
, short term investments etc. It is total current assets of the firm .
Net working capital : it is the excess of current assets over
current liabilities .It is that portion of a firm’s current assets
which are finance by long - term funds.
n.w.c = total current assets – total current liabilities

5. TYPES OF WORKING CAPITAL
PERMANENT
WORKING
CAPITAL
TEMPORARY
WORKING
CAPITAL

6. Permanent working capital
 It means the minimum amount of investment in all
current assets.
 It is needed at all times to carry out minimum level of
business activities.
 It represents continued requirement of current assets
during entire year .

7. Temporary working capital
 It is also known as fluctuating working capital or
variable working capital.
 It keeps on fluctuating from time to time depending on
business activities.
 It represents additional requirement of current assets
during the year .