Working Capital – Meaning, Nature and Uses

Working Capital – Meaning, Nature and Uses

MEANING OF WORKING CAPITAL – There have been diverging views among scholars on the definition of working capital. Western and Bingham defined it as a firm’s investment in short-term assets such as cash, short-term securities, accounts receivables and inventories”. Firth (1970) give his definition of working capital as a company’s investment in the short-term assets”. 15 working capital constitutes these assets hold for current use within a business, less the amount due to those awaiting settlement in the short-term for value supplied in whatever form. It is customary to divide working capital into two categories, that is;   [Read more…]