why working capital is needed write any two resons
Answers
《WHY WORKING CAPITAL NEEDED》
■ Proper management of working capital is essential to a company's fundamental financial health and operational success as a business.
■ The working capital ratio, which divides current assets by current liabilities, indicates whether a company has adequate cash flow to cover short-term debts and expenses.
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Proper management of working capital is essential to a company’s fundamental financial health and operational success as a business. A hallmark of good business management is the ability to utilize working capital management to maintain a solid balance between growth, profitability and liquidity.
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