The Working Capital and Its Ratios: A Qualitative Study
International Journal of Statistics and Actuarial Science
Volume 1, Issue 1, February 2017, Pages: 24-30
Received: Mar. 10, 2017; Accepted: Mar. 27, 2017; Published: Apr. 13, 2017
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Authors
Shahid Qadir Dar, Swami Vivekanand Institute of Engineering & Technology, Chandigarh, India
Amir Ahmad Dar, Department of Mathematics and Actuarial science, BSAU, Tamil Nadu, India
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Abstract
Working capital is necessary tool for a financial economics for a decision making. Unsuitable management of WC i.e. too low or too high of WC may suffer a financial firm, so a proper and sustainable WC is a key to smooth inflow of profit. Mainly WC refers the Current assets of a firm. Currents assets are Inventory, Cash, Receivables, Cash equivalents etc. It is necessary component of a financial firm because WC directly affects the liquidity of a financial firm. In this paper we calculated the different ratios such as Liquidity ratios, Profitability ratios and Leverage ratios. We used the secondary data of XYZ to calculate the above ratios in Excel that are mentioned.
Keywords
Working Capital, XYZ Firm, Liquidity Ratio, Profitability Ratio and Leverage Ratio
To cite this article
Shahid Qadir Dar, Amir Ahmad Dar, The Working Capital and Its Ratios: A Qualitative Study, International Journal of Statistics and Actuarial Science. Vol. 1, No. 1, 2017, pp. 24-30. doi: 10.11648/j.ijsas.20170101.15
Copyright
Copyright © 2017 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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