IIQ\IITY

VS.
PROIITABIIITY
IINANCING OI WORKING CAPITAI
!ong Torm IInnncIng
Shorf Torm IInnncIng
Sonfnnoous IInnncIng
AII!OACHIS !ICA!IC IIACIC
HondIng Aronch
ConsorvnfIvo Aronch
AggrossIvo Aronch
SHORT-TRM VS. IONG-TRM IINANCING
Shorf-Torm IInnncIng
O Chon buf rIsky
Chon - shorf-form rnfos gonornIIy Iowor fhnn Iong form
rnfos
!Isky bocnuso you nro confInunIIy onforIng mnrkofInco
fo borrow.
Iorrowor wIII fnco chnngIng condIfIons ( ox. HIghor
Inforosf rnfos nnd fIghf monoy)
SHORT-TRM VS. IONG-TRM IINANCING
!ong -Torm IInnncIng
O Snfo buf oxonsIvo
Snfo you cnn socuro fho roquIrod cnIfnI.
IxonsIvo Iong form rnfos gonornIIy hIghor fhnn shorf
form rnfos.
TRMINANTS OI WORKING CAPITAI
nfuro of IusInoss
SIzo of IusInoss
Crowfh nnd IxnnsIon
IroducfIon CycIo
IusInoss fIucfunfIons
IroducfIon oIIcy
SnIo oIIcy
AvnIInbIIIfy of rnw mnforInI
AvnIInbIIIfy of crodIf
VoIumo of rofIf
IvIdond oIIcy
IffIcIoncy of mnnngomonf
IrIco IovoI chnngos
IMPORTANC OI WORKING CAPITAI
nxImIzIng shnrohoIdors wonIfh
IrofIf mnxImIznfIon
IohnvIornI ObjocfIvos
Ivorgonf objocfIvos
Agoncy robIom
IfhIcnI Issuos
SocInI rosonsIbIIIfIos.
WORKING CAPITAI MANAGMNT
C Is fho rocoss of InnnIng nnd confroIIIng
fho IovoI nnd mIx of fho curronf nssofs of fho fIrm
ns woII ns fInnncIng fhoso nssofs. SocInIIy wcm
roquIros fInnncInI mnnngor fo docIdo fhnf whnf
qunnfIfIos of cnsh , nccounfs rocoIvnbIos nnd
InvonforIos ofc. fho fIrm musf hoId nf nny oInf
of fImo.
Tho gonI of C Is fo mnnngo fho curronf nssofs
nnd curronf IInbIIIfIos of fho fIrm In such n wny
fhnf snfIsfncfory IovoI of workIng cnIfnI Is
mnInfnInod.