Working Capital

Gross working capital refers to total current assets, while net working capital is current assets minus current liabilities. Positive net working capital means part of current assets is financed by long-term funds, giving a liquidity cushion.

The need for working capital arises from the operating cycle: cash is used to buy raw materials, which become work in progress and finished goods, then receivables, and finally cash again. The longer this cycle, the more working capital a business needs. The cash conversion cycle is inventory days plus receivable days minus payable days.

Working capital needs are usually split into a permanent part (the minimum level always required) and a temporary or seasonal part. Banks finance working capital through overdrafts, cash credit, demand loans, trust receipt loans and bill discounting. In assessing the limit, the bank estimates the gap in the operating cycle and expects the borrower to contribute a margin from its own long-term funds.

कुल चालु पुँजी भनेको कुल चालु सम्पत्ति र खुद चालु पुँजी भनेको चालु सम्पत्ति − चालु दायित्व हो। धनात्मक खुद चालु पुँजीले तरलता सुरक्षा दिन्छ।

चालु पुँजीको आवश्यकता सञ्चालन चक्रबाट आउँछ: नगद → कच्चा पदार्थ → अर्धनिर्मित/तयारी माल → आसामी → नगद। चक्र लामो भए बढी चालु पुँजी चाहिन्छ। नगद रूपान्तरण चक्र = मौज्दात दिन + आसामी दिन − साहु दिन।

स्थायी र अस्थायी (मौसमी) चालु पुँजी हुन्छ। बैंकले अधिविकर्ष, नगद कर्जा, माग कर्जा, ट्रस्ट रिसिट कर्जा र बिल डिस्काउन्टिङमार्फत चालु पुँजी कर्जा दिन्छ।