Q: Working capital management lecture & readings
- What kind of activities/components does working capital management encompass? Name at least 3.
What is the difference between gross and net working capital?
How do current assets differ from fixed assets? Name at least 2 differences.
What are the goals of working capital management? Name at least 2.
How does the traditional view on working capital management differ from the modern view?
How one can calculate cash conversion cycle? How this indicator should be interpreted?
How one can calculate operating cycle? How this indicator should be interpreted?
Which ratio can be calculated for determining the liquidity of the company? Present the formula and provide explanation to how it should be interpreted.
What kind of activities could benchmarking of working capital management involve?
What are the disadvantages of excess working capital? Name at least 3 items.
What are the disadvantages of inadequate working capital? Name at least 3 items.
Which factors influence company’s working capital requirement? Name at least 3 items and explain their impact on the size of working capital.
What characterizes aggressive working capital financing strategy? Explain the strategy shortly.
What characterises moderate working capital financing strategy? Explain the strategy shortly.
What characterises conservative working capital financing strategy? Explain the strategy shortly.