Determinants of working capital, Issues in working capital management, Numerical in fm

Working capital is like the money you have in your piggy bank that you use to buy things you need. The determinants of working capital are the things that decide how much money you have in your piggy bank, like how much money you get from your allowance and how much you spend on toys and snacks. For example, if you get a bigger allowance, you will have more money in your piggy bank. But if you spend a lot of money on toys and snacks, you will have less money left over. Issues in working capital management are like when you have to decide how much money to save and how much to spend. It’s important to make sure you have enough money in your piggy bank to buy things you need, but also to not spend too much and run out of money. For example, if you save too much money and never buy anything, you might miss out on fun things. But if you spend all your money at once, you won’t have enough left for important things. Numerical in FM means using numbers to understand and manage your working capital. You can keep track of how much money you have, how much you spend, and how much you save to make sure you are managing your piggy bank well. One verifiable fact is that according to a study by the Harvard Business Review, companies with efficient working capital management are more likely to be successful and profitable. This shows how important it is to manage your working capital wisely.