The Scale of a

Working Capital
 The scale of investment in working capital is vast.
The amount of working capital a company has will typically
depend on its industry.

Trade Manufacturing
A manufacturing company requires
A retail shop requires less The wholesalers require more
working capital, as they have a huge amount of working capital
working capital as the
to maintain a large stock and as it has to convert its raw material
length of the operating
generally sell goods on credit, into finished goods, sell the goods
cycle of these types of
increasing the length of the on credit, maintain the inventory of
businesses is small.
operating cycle. raw materials and finished goods.
A working capital analysis and its implications must consider
the industry and market in which a company operates.
Some factors that determines the scale of working capital are:

Nature of Scale of Operating Credit allowed to

Customers and
Business Operation Cycle availed to Suppliers

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