working capital pdf

[Virtual Presenter] Working capital management is crucial in any organization. Effective financial planning is essential for success. Let's explore the significance of working capital in today's business landscape..

WORKING CAPITAL.

[Audio] Working capital is a financial metric that measures the difference between a company's current assets and current liabilities. This metric plays a crucial role in planning for future needs and ensuring the company has sufficient cash and cash equivalents to meet its short-term obligations, including unpaid taxes and short-term debt..

[Audio] Current assets refer to those assets that can be easily converted into cash within a period of 12 months. This includes items such as cash itself, accounts receivable, and inventory. These assets are considered liquid because they can be quickly turned into cash if needed. They play a crucial role in a company's ability to meet its short-term financial obligations..

[Audio] Current liabilities refer to obligations that need to be settled within the next 12 months. These include accounts payable, which are amounts owed by the company to its suppliers or creditors, and current portions of long-term debt payments, which are installments paid on debts with longer repayment periods..

[Audio] Working capital is a key indicator of a company's financial health. Two notable examples of companies that have successfully managed their working capital are Wells Fargo and 10-Y-Z Limited. Wells Fargo, a multinational corporation, has a positive working capital of $85000, while 10-Y-Z Limited has a positive net working capital of Rs. 110000. These companies demonstrate the importance of effective working capital management in achieving financial stability and growth..

[Audio] Henry Wells and William G Fargo founded Wells Fargo in New York City on March 18, 1852. Since then, the company has grown and expanded its operations, eventually establishing its headquarters in San Francisco, California..

[Audio] Mergers and acquisitions have played a significant role in shaping the financial landscape. One notable example is the merger between Wells Fargo and Norwest Corporation in 1998. Since then, Wells Fargo has continued to expand its reach by acquiring other banks and businesses. This strategy has enabled the company to grow its operations and increase its market share..

[Audio] Henry Wells and William George Fargo founded the original company. They played a crucial role in shaping its history. Their contributions have had a lasting impact on the organization's development..

THANK YOU ALL.